If a Kentucky listing brokerage received a $25,000 commission check, what was the total sale price of the property if the commission rate was 5%?

Prepare for the Kentucky 96-Hour Salesperson Test with multiple choice questions and detailed explanations. Boost your knowledge and confidence for success!

To find the total sale price of the property given the commission amount and the commission rate, you can use the formula:

Total Sale Price = Commission Amount / Commission Rate

In this scenario, the commission amount is $25,000, and the commission rate is 5%, which can be expressed as 0.05 in decimal form.

Using the formula:

Total Sale Price = $25,000 / 0.05 = $500,000

Therefore, the total sale price of the property is $500,000.

As for the chosen answer, it does not align with the accurate calculation. The appropriate method of determining the total sale price shows a clear pathway to the correct figure, ensuring a solid understanding of how commissions and rates interact in a real estate context.

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