Question

Clarence Louis sells commercial real estate he earns 2% commission on the first $25,000 4 percent on the next $25,000 at 8% on sales over $50,000 last month he sold $118,000 in commercial real estate what was the total commission

Answer 1

The total commission earned by Clarence Louis is $8940

Solution:

Given that

Clarence Louis sells commercial real state

He earns 2% commission on first $25000

4% commission on second $25000

And 8% commission on sales over $50000

His sell for last month in commercial real state is $118000.

Need to calculate commission on sale of $ 118000.

$118000 = 25000 + 25000 + 93000

Commission on first 25000 is given as:

`=2 \% \text { of } 25000=(2)/(100) * 25000=\$ 500`

Commission on second 25000 is given as:

`=4 \% \text { of } 25000=(4)/(100) * 25000=\$ 1000`

Commission on remaining amount 93000 is given as:

`=8 \% \text { of } 93000=(8)/(100) * 93000=\$ 7440`

Total commission = 500 + 1000 + 7440 = $8940

Hence last month commission earned by Clarence Louis on sell of $118000 is $8940