Question

A realtor earns 3% commission on a home she sells. If she receives $6,000 in commission, what was the price of the home?

A) $200,000.
B) $180,000.
C) $20,000.
D) $18,000.

Answer 1

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.