When a property sells for $350,000 with a 6% commission, how much is the total commission earned?

When a property sells for $350,000 with a 6% commission, how much is the total commission earned?

• A. $15,000
• B. $20,000
• C. $21,000
• D. $7,500

Answer: (B)

To determine the total commission earned on a property sale, you need to calculate a percentage of the sale price. In this case, the property sells for $350,000, and the commission rate is set at 6%. To find the total commission, multiply the sale price by the commission rate: Total Commission = Sale Price × Commission Rate Total Commission = $350,000 × 0.06 Total Commission = $21,000 This calculation shows that the total commission earned on the sale of the property is indeed $21,000. Understanding this method of calculating commissions is crucial for real estate professionals, as it is a common practice in determining how much they will earn from a transaction.

To determine the total commission earned on a property sale, you need to calculate a percentage of the sale price. In this case, the property sells for $350,000, and the commission rate is set at 6%.

To find the total commission, multiply the sale price by the commission rate:

Total Commission = Sale Price × Commission Rate

Total Commission = $350,000 × 0.06

Total Commission = $21,000

This calculation shows that the total commission earned on the sale of the property is indeed $21,000. Understanding this method of calculating commissions is crucial for real estate professionals, as it is a common practice in determining how much they will earn from a transaction.