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

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