Question

your real estate job pays you 5% commission on your first $50,000 for selling a house and 8% commission on the sale amount over $50,000. if you sold a $75,000 house, how much is your commission.

Answer 1

$4,500.00

Explanation:

.05(50,000) + .08(75,000-50,000)

2,500 + 2,000

4,500

Answer 2

$4500

Explanation:

You want to know the commission on a $75000 sale if it is 5% on the first $50000 and 8% of the amount over $50000.

Commission

The amount of commission is found by multiplying the commission rate by the applicable sale amount. For a sale amount x such that x > $50,000, the commission is ...

C = 0.05(50000) +0.08(x -50000) = 0.08x -0.03(50000)

C = 0.08x -1500

The commission on a sale of 75000 would be ...

C = 0.08(75000) -1500 = 6000 -1500 = 4500

Your commission is $4500.