Amy Is Trying to Decide Whether or Not It Would

question 14

Multiple Choice

Amy is trying to decide whether or not it would be beneficial to employ the services of a real estate broker in order to facilitate the sale of her home. She has estimated that the marketing costs and opportunity cost associated with time spent dealing with prospective buyers amounts to $5,000. If Amy were to sell the house on her own for $200,000, but a broker would have been able to negotiate a higher price of $206,350, what commission rate should Amy have been willing to accept from a real estate broker to make her indifferent between selling the house on her own and hiring a real estate broker?

• A) 2.4%
• B) 3.1%
• C) 5.0%
• D) 5.5%

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Definitions:

Supreme Court

The highest judicial body in a country or jurisdiction, often having the final authority in legal disputes and constitutional matters.

Same Sex Marriage

The legally recognized union of two individuals of the same gender, affording them the same marital rights and responsibilities as different-gender couples.

Supreme Court

The highest judicial body in a country or jurisdiction, which has the ultimate authority in interpreting the law and constitution.

Civil Marriage

A marriage performed, recorded, and recognized by a government official without religious content.