Question

Phil Morton sells real estate and earns a 3% straight commission on each sale. He recently sold a house for $187,600. What was his commission?

A) $5,628
B) $5,628.50
C) $5,629
D) $5,629.50

Answer 1

The correct option is A). Phil Morton earns a 3% commission on sales. He sold a house for $187,600, which means his commission is calculated as $187,600 x 0.03, equating to $5,628. Option A) $5,628 is the correct answer.

Step-by-step explanation:

Phil Morton sold a house for $187,600 and earned a 3% straight commission on each sale. To calculate his commission, we multiply the total sales amount by the commission percentage:

Commission = Sale Price × Commission Rate

Commission = $187,600 × 0.03

Commission = $5,628

Therefore, Phil Morton's commission from the sale of the house is $5,628, which corresponds with option A).