Question

Assuming that the listing agent and the selling agent in a transaction split their commission equally, what was the sales price of the property if the commission rate was 5.5% and the listing agent received $12,584? a) $228,800 b) $242,871 c) $457,600 d) $692,120

Answer 1

C) $457,600

Explanation:

Let x be the sales price of the property.

We know that the total commission, C, is 5.5% of x, which we can write as:

C = 0.055*(x)

We are told the (1/2) of the commission went to the selling agent and was equal to $12,584. That can be written as:

(1/2)*C = $12,584

Rearrange to isolate C: C = $25,168.

Use the value of C in the first equation:

C = 0.05*(x)

$25,168 = 0.055*(x)

The sales price, x, can now be calculated:

x = $25,168/(0.055)

x = $457,600