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%?

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%?

• A. $500,000
• B. $750,000
• C. $1 million
• D. $1.25 million

Answer: (C)

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.

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.