A property in Arizona sells for $400,000. If the agent earns 3% on the first $100,000 and 2.5% on the remainder, what is the total commission?
Correct Answer
A) $10,500
First $100,000 × 3% = $3,000. Remaining $300,000 × 2.5% = $7,500. Total = $10,500.
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Related Topics & Key Terms
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Key Terms:
Related Concepts
Transfer tax is a tax imposed on the transfer of real property ownership, typically calculated based on the sale price and paid at closing. It is commonly expressed as a rate per $100, $500, or $1,000 of the sale price.
Annual interest is the total amount of interest charged on a loan or investment over a year.
Area calculation involves determining the square footage or acreage of a property using geometric formulas. Key conversions: 1 acre = 43,560 square feet, 1 mile = 5,280 feet, 1 section = 640 acres.
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