Question

Randall is a real estate agent. His earnings are based on a graduated commission. He receives 4% on any sale up to 100,000 and 6% for any amount over the $100,000. Last saturday he sold a house for $109,000. How much did he make selling the house?

Answer 1

The correct answer is $4,540

Explanation:

Answer 2

Randall make $4,540 in commission selling the house

Explanation:

we know that

Last saturday Randall sold a house for $109,000

so

1) He receives 4% on any sale up to 100,000

`4\%=4/100=0.04`

Multiply $100,000 by 0.04

`100,000(0.04)=\$4,000`

2) He receives 6% for any amount over the $100,000

so

`\$109,000-\$100,000=\$9,000`

`6\%=6/100=0.06`

Multiply $9,000 by 0.06

`\$9,000(0.06)=\$540`

Sum the two amounts

`\$4,000+\$540=\$4,540`

therefore

Randall make $4,540 in commission selling the house