Question

13. Suppose a real estate agent receives 5%

commission on the fi rst $200 000 of a
house’s selling price, and 6% on the
remaining amount.
a) What does commission mean?
b) If a house sells for $345 000, how
much commission does the real estate
agent make on the sale of the house?

Answer 1

Commision may be defined as a percentage cut which an employee, broker, vendor, retailer or other persons within a sale chain receive from an employer or production firm for selling a good or offering a successful service based on agreed terms by both parties. ;

$18700

Explanation:

Given :

Commision pattern :

5% on first $200,000

6% on remaining amount

Amount of commission on $345000

0.05 * 200000 = 10,000

0.06 * (345000 - 200000) = 8700

Total commission :

10,000 + 8700 = 18,700