42. A property sells for $100,000 and the commission charged by Listing Company A is 5.5%. It was sold by Company X through the multiple listing service with an indicated cooperative fee of 2.5%. How much will Company X receive?
Answer: A
Company X will receive $2,500.
The commission for the sale of the property is calculated based on the selling price and the cooperative fee indicated for Company X. Given a selling price of $100,000 and a cooperative fee of 2.5%, Company X's commission amounts to $2,500.
A) $2,500
This option is correct. To calculate the amount Company X receives, we take the selling price of $100,000 and multiply it by the cooperative fee of 2.5% (0.025). This results in $100,000 x 0.025 = $2,500, accurately reflecting Company X's commission from the sale.
B) $3,000
This option is incorrect. A commission of $3,000 would imply a different percentage than the indicated cooperative fee of 2.5%. Specifically, $3,000 would represent a commission rate of 3% on the $100,000 sale, which is not applicable here.
C) $5,500
This option is incorrect. A commission of $5,500 corresponds to the total commission charged by Listing Company A at 5.5% of the selling price, calculated as $100,000 x 0.055. However, this does not pertain to the amount Company X receives, which is determined only by the cooperative fee.
D) $8,000
This option is incorrect. An amount of $8,000 suggests a commission that would imply an unrealistic rate given the selling price and the cooperative fee. Specifically, this would indicate an 8% commission on the sale, which does not align with the provided commission structure.
Conclusion
The correct answer, $2,500, is the result of applying the 2.5% cooperative fee to the selling price of the property. All other options do not accurately reflect either the commission structure or the calculations based on the provided data. Thus, they are eliminated as possible answers.