Karen made a commission of $3,522.75 on the sale of a property. she split her commission equally with her broker which is 50% to the broker and 50% to karen. her broker took 55% of the total commission on a 7% commission rate. what was the sale price of the property?

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Business

Shaun Hess

12 November, 13:15

Karen made a commission of $3,522.75 on the sale of a property. she split her commission equally with her broker which is 50% to the broker and 50% to karen. her broker took 55% of the total commission on a 7% commission rate. what was the sale price of the property?

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Esther Nicholson · Answer 1

Karen split her commission 50-50 with her broker. Therefore she is left with:

Karen’s commission = $3,522.75 * 0.5 = $1,761.375

Karen’s broker received 55% of the total commission. Therefore Karen must only be receiving 45% of the total commission. The total commission must be then:

Total commission = $1,761.375 / 0.45 = $3,914.17

On a rate of 7%, the sale price of the property must be:

Sale price = $3,914.17 / 0.07

Sale price = $55,917