Question

frank is a time-share brokers. his earnings are based on a graduated commission. he receives 3% on any time-share sale up to $10,000 and 5% for any amount over the $10,000. last saturday he sold a time-share for $10,500. how much did he make selling the time-share?

Answer 1

$325

Explanation:

Time-share = $10 500

On first $10 000 ,

Commission at 3 % = 0.03 × 10 000 = $300

On remaining $500,

Commission at 5 % = 0.05 × 500 = 25

Total commission = $325

Frank made $325 selling the time-share.