Question

7. A broker was paid 7% commission on the first $50,000 of a house that sold for $82.500. If

the total commission was $4475, what percent commission was paid on the balance?
a. 1.18%
b. 5.4%
C3%
d. 5%

Answer 1

The percentage of commission paid on the balance is 3%

Explanation:

The Total cost of house = $82,500

The percentage of commission given to broker on first $50,000 = 7%

The total commission amount = $4475

Now the left amount = Total amount - $50,000

Or, the left amount = $82,500 - $50,000 = $32,500

The amount as commission on first $50,000 = 7% of $50,000

Or, The amount as commission on first $50,000 = 0.07 × $50,000 = $3500

∵ The total commission amount = $4475

∴ The balance commission amount after $4475 = $4475 - $3500 = $975

Now Let The percentage of commission on $32,500 be x %

So , x% of $ 32,500 = $975

Or,
`(x)/(100)* $32500 = 975`

∴ x =
`(975)/(325)`

I.e x = 3 %

Hence The balance percentage commission is 3% Answer