Final Answer:
The price of the home was $200,000 (Option A) as the realtor's 3% commission, amounting to $6,000, represents the portion of the home's sale price. Calculating the total price by dividing the commission by the percentage yields $200,000, confirming Option A as the correct answer.
Step-by-step explanation:
To determine the price of the home, we can use the formula for calculating the commission. The realtor earns 3% in commission, which is represented as 3/100. If the commission received is $6,000, we can set up the equation:
Commission = (Commission Rate) × Price of the Home
$6,000 = (3/100) × Price of the Home
To find the Price of the Home, we rearrange the equation:
Price of the Home = $6,000 / (3/100)
Price of the Home = $6,000 × (100/3)
Price of the Home = $200,000
Therefore, the price of the home was $200,000, which aligns with Option A in the choices provided.
This calculation illustrates the direct relationship between the commission earned and the price of the home, using the percentage as a factor. In this scenario, 3% of the home's price equates to $6,000. This mathematical approach allows for a precise determination of the home's price based on the commission earned by the realtor.(Option A) is correct.