A broker lists a property for $87,500 at 7% commission on the first $50,000 and 5% on the balance. The property sells for 4% less than asking price. What commission was earned?

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TomShelby TomShelby · Answer 1 · 2020-02-20T09:08:03+01:00

Answer:

The commision earned for the broker will be of 4,860 dollars

Explanation:

First, we solve for the selling price

the property sold at 4% less that is

87,500 x (1 - 0.04) = 84,000

Now we calculate the commision

the commision is 7% on the first 50,000 and the n 4% for the rest:

50,000 x 7% = 3,500

(84,000 - 50,000) x 4% = 1,360

total commision 3,500 + 1,360 = 4,860

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anthougo anthougo · Answer 2 · 2022-04-16T19:56:15+02:00

The broker's commission from a property listed for $87,500 but sold for $84,000 {$87,500 x (1 - 4%)} is $5,200.

A listing broker is a real estate agent that lists properties for sale. The listing broker can be differentiated from the selling broker.

The selling broker works with the buyer of the real estate property while the listing broker works for the interest of the property owner.

The listing broker's commission is based on the selling price and not the listing price.

The list price of property = $87,500

Sales price = $84,000 {$87,500 x (1 - 4%)}

First commission = $3,500 ($50,000 x 7%)

Remianing commission = $1,700 ($84,000 - $50,000 x 5%)

Listing broker's total commission = $5,200 ($3,500 + $1,700)

Thus, the listing broker earned a commission of $5,200.

Learn more about listing broker's commission at https://brainly.com/question/26599799