Question

A broker sold a residence for $485,000 and received $26,675 as commission in accordance with the terms of the listing agreement. What was the broker's commission rate?

A. 5%
B. 5.5%
C. 6%
D. 6.5%

Answer 1

To calculate the broker's commission rate, divide the commission amount of $26,675 by the sale price of $485,000 and multiply by 100 to get 5.5%. In this case, the broker sold a residence for $485,000 and received $26,675 as commission.

Step-by-step explanation:

To find the broker's commission rate, you divide the commission amount by the sale price of the residence and then multiply by 100 to get the percentage. In this case, the broker sold a residence for $485,000 and received $26,675 as commission. The commission rate is calculated as follows:

Commission Rate = (Commission Amount / Sale Price) × 100

Commission Rate = ($26,675 / $485,000) × 100

Commission Rate = 5.5%

Therefore, the correct answer is B. 5.5%.