If a property sells for $100,000 and the commission rate is 6%, what is the total commission earned?

To determine the total commission earned from a property sale, you need to multiply the sale price of the property by the commission rate. In this case, the property sells for $100,000, and the commission rate is 6%.

First, convert the commission rate from a percentage to a decimal by dividing by 100: 6% becomes 0.06.

Next, multiply the sale price by the decimal commission rate:

$100,000 x 0.06 = $6,000.

This calculation shows that the total commission earned on the sale of the property is $6,000, confirming that this is the correct amount. Understanding this calculation is essential in real estate transactions, as it affects both agents and their clients regarding financial planning and commissions.