Broker Jeff's JT Realty earned a commission of $18,785 on a sale priced at $289,000. What was the commission rate?

Broker Jeff's JT Realty earned a commission of $18,785 on a sale priced at $289,000. What was the commission rate?

• A. 5.75%
• B. 6%
• C. 6.5%
• D. 7%

Answer: (C)

To determine the commission rate, you can use the formula: \[ \text{Commission Rate} = \left( \frac{\text{Commission Earned}}{\text{Sale Price}} \right) \times 100 \] In this case, the commission earned is $18,785, and the sale price is $289,000. First, you would perform the division: \[ \frac{18,785}{289,000} \approx 0.065 \] Next, to convert this into a percentage, you multiply by 100: \[ 0.065 \times 100 \approx 6.5\% \] Thus, the calculated commission rate is 6.5%, which corresponds to the correct choice. This calculation not only confirms the rate but also illustrates how to derive it from the commission and sale price, which is a critical skill in real estate.

To determine the commission rate, you can use the formula:

[

\text{Commission Rate} = \left( \frac{\text{Commission Earned}}{\text{Sale Price}} \right) \times 100

]

In this case, the commission earned is $18,785, and the sale price is $289,000.

First, you would perform the division:

[

\frac{18,785}{289,000} \approx 0.065

]

Next, to convert this into a percentage, you multiply by 100:

[

0.065 \times 100 \approx 6.5%

]

Thus, the calculated commission rate is 6.5%, which corresponds to the correct choice. This calculation not only confirms the rate but also illustrates how to derive it from the commission and sale price, which is a critical skill in real estate.