Question

Property agent charges a commission of 5% on the first $10,000 and 2 1/4% on the remainder of the selling price. Find the amount of commission he will receive if he sells a piece of property for $46,000

Answer 1

Answer:

He will receive $1310 amount of commission.

Step-by-step explanation:

Given:

Property agent charges a commission of 5% on the first $10,000 and 2 1/4% on the remainder of the selling price.

He sells a piece of property for $46,000.

Now, to find the amount of commission.

Price of property = $46,000.

So, the commission of 5% on the first $10,000 is:

5% of $10,000.

$=\frac{5}{100} \times 10000$

$=0.05\times 10000$

$=\ 500.$

Thus the remaining amount is:

$\ 46,000-\ 10,000=\ 36,000$

Now, $2\frac{1}{4}\%$ commission on $36,000:

$\frac{9}{4} \%\ of\ 36000$

= $\frac{\frac{9}{4}}{100} \times 36000$

= $0.0225\times 36000$

=  $\ 810.$

Now, adding both the amount of commissions to get the total amount of commission he will receive:

$\ 500+\ 810$

$=\ 1310.$

Therefore, he will receive $1310 amount of commission.