Question

Mr. Smith sells houses. He earns 6% for every house he sells.Last week, he's sold a house for $175,000. How much commission did he earn? If he has an $11,000 balance on his credit card, will this be enough to pay it off?

Answer 1

Commission earned = $10,500

This would not be sufficient to pay his credit card bill completely.

Explanation:

Value of the house sold by Mr. Smith last week = $175,000

Commission earned by Mr. Smith for the transaction = 6%

Calculating the commission amount earned by him =
`\[(6)/(100)*175000\]`

=$10,500

Balance outstanding on his credit card = $11,000

Hence the commission amount would not be sufficient to pay his credit card balance off completely. He will be short by $500.