What commission will be earned by a broker if a property sells for $200,000 at a 7% rate?

To determine the commission earned by a broker on a property sale, you multiply the sale price of the property by the commission rate. In this example, the property sells for $200,000 and the commission rate is 7%.

Calculating the commission:

[ Commission = Sale Price \times Commission Rate ]

[ Commission = 200,000 \times 0.07 = 14,000 ]

This indicates that the total commission earned by the broker would be $14,000.

Thus, the correct choice reflects the accurate calculation of the commission based on the provided sale price and commission percentage. Understanding this formula is essential since real estate transactions frequently involve calculations of commission to understand the financial aspects of the sale. This knowledge will be vital for both brokers and buyers in the real estate industry.