The seller states they will accept the buyer’s offer if the broker lowers their 6% commission by 25%. If the broker accepts, they will receive:
Question & Answer
Review the question and all answer choices
$15,000.
Answer A ($15,000) is incorrect because it represents a 9.1% commission (not 6%), suggesting a misunderstanding of the original commission rate or calculation method.
$13,200.
Answer B ($13,200) is incorrect as it represents a 4.8% commission, which would be a 20% reduction from 6%, not the requested 25% reduction.
$9,900.
$8,
Answer D is incomplete but would likely be incorrect as it doesn't represent a proper calculation of a 25% reduction from a 6% commission on the implied sale price.
Why is this correct?
Answer C ($9,900) is correct because it properly calculates a 25% reduction from a 6% commission. The original commission would be $16,500 (6% of $275,000), and reducing this by 25% yields $9,900. This demonstrates understanding that commission reductions apply to the commission amount, not the sale price.
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