What is the commission rate if a commission amount of $6,000 was earned on a property sold for $120,000?

To determine the commission rate based on the commission amount and the property's sale price, you can use the formula:

Commission Rate = (Commission Amount / Sale Price) x 100

In this case, the commission earned is $6,000, and the property was sold for $120,000. Plugging in those figures, the calculation would be:

Commission Rate = ($6,000 / $120,000) x 100 = 0.05 x 100 = 5%

This calculation clearly shows that the commission rate is 5%. This percentage indicates the portion of the sale price that the commission represents, which is a critical piece of information in real estate transactions as it helps agents and sellers understand the cost of services provided.