Question

For commission as a realtor, Michelle earns $349 plus 3% of the purchase price for each home she helps buy or sell. If she earned $8,965 in commission on a certain home, find its purchase price.

Answer 1

The purchase price of the home that resulted in Michelle earning a commission of $8,965 was $287,200.

Step-by-step explanation:

To calculate the purchase price of the home that Michelle helped buy or sell to earn a commission of $8,965, we need to set up an equation based on the information provided about her commission structure. Michelle earns a fixed amount of $349 plus 3% of the purchase price. If we let P represent the purchase price of the home, the equation we need to solve is:

$349 + 0.03P = $8,965.

Subtracting $349 from both sides to isolate the variable term gives us:

0.03P = $8,616.

Now, dividing both sides by 0.03 will give us the purchase price:

P = $8,616 / 0.03

P = $287,200

So, the purchase price of the home was $287,200.