Question

Morgan is a real estate agent and most recently made $12,500 on the sale of a home. Her commission she earns in selling homes is 12%. What was the sale price of the home that Morgan sold? Round to the nearest dollar amount

Answer 1

Morgan's commission was $12,500 at a rate of 12%, which means the home was sold for approximately $104,167. This is calculated by dividing the commission amount by the commission rate.

Step-by-step explanation:

To calculate the sale price of the home that Morgan, the real estate agent, sold, when we know her commission was $12,500 at a rate of 12%, we use the formula:

Commission = (Sale Price) x (Commission Rate)

To find the sale price, we rearrange the formula as follows:

Sale Price = Commission / Commission Rate

Thus, we have:

Sale Price = $12,500 / 0.12

This gives us a sale price of $104,166.67. Rounding to the nearest dollar, the sale price Morgan sold the home for was $104,167.

Understanding this concept is important as housing prices have generally risen steadily over time, and the commission a real estate agent earns is a reflection of these dynamic market values. For example, the median sales price for an existing one-family home was significantly lower in 1990 compared to today, indicating a steady increase and solidifying the value of real estate as an investment.

Answer 2

$104,167 approx.

Step-by-step explanation:

Step one:

Given data

Morgan made $12,500 on the sale of a home.

Her commission she earns in selling homes is 12%

Step two:

let the cost of the home be x

So 12% of x= 12,500

12/100*x= 12,500

0.12*x=12,500

0.12x=12,500

divide both sides by 0.12

x= 12,500/0.12

x=$104,166.66

x=$104,167