Question

At a real estate​ agency, an agent sold a house for ​$395,000. The commission rate is ​4.5% for the real estate agency and the commission rate for the agent is ​30% of the amount the real estate agency gets. How much did the agency make on the​ house? How much did the agent earn in​ commission?

Answer 1

The commission earned by the real estate agency is 4.5% of the sale price of the house:

Commission earned by agency = 4.5% of $395,000

Commission earned by agency = 0.045 x $395,000

Commission earned by agency = $17,775

The commission earned by the agent is 30% of the commission earned by the real estate agency:

Commission earned by agent = 30% of $17,775

Commission earned by agent = 0.30 x $17,775

Commission earned by agent = $5,332.50

Therefore, the agency made $17,775 on the house, and the agent earned $5,332.50 in commission.