You Sell Your House at 95

question 42

Multiple Choice

You sell your house at 95.7% of the list price. What was the amount of sales commission if the commission percentage is 3.75% and the list price of the house was $182 500?

• A) $6449.47
• B) $6449.74
• C) $6149.47
• D) $6149.74
• E) $6549.47

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Definitions:

Collection Delay

The time lag between when a sale is made or service rendered and when the payment is actually received.

Cash Balance

The amount of cash a company has on hand at any given time, which includes currency, coins, and balances in checking and savings accounts.

Market Rate of Return

The average return that investors expect to earn from a particular investment, based on historical or anticipated performance.

Trading Costs

Trading costs are the expenses incurred in buying and selling financial instruments, including commissions, spreads, and slippage.