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5 February, 20:55

A parcel of land described as "the NW 1/4 and the SW 1/4 of Section 6, T4N, R8W of the Third Principal Meridian" was sold for $875 per acre. The listing brokerage will receive a 5% commission on the total sales price. How much will the broker receive?

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  1. 5 February, 21:45
    0
    The broker will receive $14 000

    Explanation:

    Seeing that there is an "AND" in the above scenario, it is important to keep that in mind.

    The parcel described as NW

    640:4=160

    160*875=140,000

    The parcel described as SW

    640:4=160

    160*875=140,000

    Therefore since 140,000 * 2 = 280,000 : 5 percent = $14,000
  2. 5 February, 21:47
    0
    The broker will receive $14,000

    Explanation:

    A parcel of land can be quantified as = 640 acres

    Number of acres For the N/W 1/4 = 1/4 of a parcel = 1/4 * 640 acres = 160 acres.

    Number of acres For the S/W 1/4 = 1/4 of a parcel = 1/4 * 640 acres = 160 acres.

    Total number of acres of both = 160+160 acres = 320 acres.

    Cost per acre = $875 per acre

    Selling price = amount of land * cost per unit = 320 acres * $875 per acre

    Selling price = $280,000

    Commission received by broker = % commission * selling price/100%

    %commission = 5%

    Commission = 5% * $280,000/100% = 1400,000/100

    Commission = $14,000
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