What is the total commission earned on a sale of $225,000 at a 6% commission rate?

What is the total commission earned on a sale of $225,000 at a 6% commission rate?

• A. 13,500
• B. 12,000
• C. 15,000
• D. 20,000

Answer: (A)

Commission is found by applying the percentage to the sale price. Convert 6% to a decimal (0.06) and multiply by 225,000. 225,000 × 0.06 = 13,500 So the total commission earned is $13,500. For context, 12,000 would be 6% of 200,000; 15,000 is about 6.666...% of 225,000; and 20,000 is about 8.89% of 225,000, which don’t match 6% of the sale price.

Commission is found by applying the percentage to the sale price. Convert 6% to a decimal (0.06) and multiply by 225,000.

225,000 × 0.06 = 13,500

So the total commission earned is $13,500. For context, 12,000 would be 6% of 200,000; 15,000 is about 6.666...% of 225,000; and 20,000 is about 8.89% of 225,000, which don’t match 6% of the sale price.