Question

A broker sold a property that was owned by a bank that had acquired it through foreclosure, and the broker received a 6.5% commission. The broker gave the listing sales associate $3,575, which was 30% of the firm's commission. What was the selling price of the property?

A. $55,000
B. $95,775
C. $152,580
D. $183,333

Answer 1

D. $183,333

The selling price of the property is $183,333.33.

Step-by-step explanation:

To find the selling price of the property, we need to determine the total commission earned by the broker. We are given that the broker received a 6.5% commission, and the listing sales associate received $3,575, which is 30% of the firm's commission. Let's find the total commission earned by the broker:

Let x be the total commission earned by the broker. Since the listing sales associate received 30% of the firm's commission, we can write the equation:

0.3x = 3575

Solving for x, we have:

x = 3575 / 0.3 = $11,916.67

The total commission earned by the broker is $11,916.67. Now, let's find the selling price of the property:

Since the broker's commission is 6.5%, we can write another equation:

0.065(selling price) = 11,916.67

Dividing both sides by 0.065, we have:

selling price = 11,916.67 / 0.065 = $183,333.33

Therefore, the selling price of the property is $183,333.33, which is option D.