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Assuming there are no extra fees, and the broker is representing the buyer and the seller, what was the final sales price of a property if the commission rate was 5.5% and the broker received $11,000

A. $60,500
B. $66,000
C. $175,000
D. $200,000

User Hogan
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1 Answer

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Final answer:

To calculate the final sales price of a property with a 5.5% commission rate that resulted in a $11,000 commission for the broker, we set up the equation 0.055 × Sales Price = $11,000. After solving, we find that the final sales price of the property is $200,000. The correct option is D.

Step-by-step explanation:

The question is asking us to calculate the final sales price of a property if the broker's commission was 5.5% and the broker received $11,000. To find this, we can set up the equation where the commission rate (expressed as a decimal) multiplied by the sales price equals the commission amount:

Commission Rate as Decimal × Sales Price = Commission Amount

First, we convert the commission rate from a percentage to a decimal by dividing by 100:

5.5% ÷ 100 = 0.055

Then, we plug in the commission amount and the decimal rate to solve for the sales price:

0.055 × Sales Price = $11,000

To find the sales price, we divide the commission amount by the commission rate:

Sales Price = $11,000 ÷ 0.055

Sales Price = $200,000

Therefore, the final sales price of the property is $200,000, which corresponds to option D.

User Maambmb
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