If a property sells for $500,000 and the rate of commission is 6%, what is the commission?

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Multiple Choice

If a property sells for $500,000 and the rate of commission is 6%, what is the commission?

Explanation:
Commissions are calculated as a percentage of the sale price. Multiply the sale price by the commission rate: 500,000 × 0.06 = 30,000. So the commission is 30,000. The other options would imply different percentages (0.6% for 3,000; 60% for 300,000; 10% for 50,000), which don’t match a 6% rate.

Commissions are calculated as a percentage of the sale price. Multiply the sale price by the commission rate: 500,000 × 0.06 = 30,000. So the commission is 30,000. The other options would imply different percentages (0.6% for 3,000; 60% for 300,000; 10% for 50,000), which don’t match a 6% rate.

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