Question

At a real estate​ agency, an agent sold a house for ​$396,000. The commission rate is ​7.5% for the real estate agency and the commission rate for the agent is ​20% of the amount the real estate agency gets. How much did the agency make on the​ house? How much did the agent earn in​ commission?

Answer 1

$29,700 and $79,200

Explanation:

Step one:

given

The selling price of the house is ​$396,000

The commission rate is ​7.5% for the real estate agency

The commission rate for the agent is ​20%

Step two:

1. How much did the agency make on the​ house?

This amount is 7.5% of $396,000

= 7.5/100*396,000

= 0.075*396,000

=$29,700

2. How much did the agent earn in​ commission?

This amount is 20% of $396,000

= 20/100*396,000

= 0.2*396,000

=$79,200