A broker earns a total commission of $18,000 on a sale. If the commission rate was 6%, what was the sale price of the property?
Correct Answer
D) $300,000
Step 1: To find the sale price, divide the commission by the rate: $18,000 ÷ 0.06 = $300,000.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
Daily rate calculation involves determining the cost or income per day by dividing the total amount by the number of days in the period (usually a year or a month). This is a fundamental step in proration.
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- → A borrower takes out an interest-only loan of $180,000 at an annual interest rate of 5%. What is the interest due for the first month?
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