What is the commission earned by an agent when selling a property for $200,000 at a 5% commission rate?

To determine the commission earned by an agent when selling a property, you can use the following formula: Commission = Sale Price x Commission Rate.

In this scenario, the property is sold for $200,000, and the commission rate is 5%.

Calculating the commission:

Commission = $200,000 x 0.05
Commission = $10,000

The correct commission amount is therefore $10,000. This calculation reflects the typical practice in real estate where a percentage of the sale price is taken as the agent's commission. The commission is an incentive for agents to sell properties, and the standard practice is to express it as a percentage of the final sale price, which effectively rewards agents based on the value of the transaction they facilitate.