Question

At a real estate agency, an agent sold a house for $323,000. The commission rate is 4.5% for the real estate agency and the commission rate for the agent is 20% 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

• agency: $14,535
• agent: $2907

Explanation:

You want to know the amount of commission earned by a real estate agency and the agent on the sale of a house for $323,000 if the agency earns 4.5% and the agent earns 20% of that.

Commission

The amount of commission is the product of the commission rate and the value of the sale. For the agency, the commission earned is ...

0.045 × $323,000 = $14535

The agency earned $14,535 on the sale.

The agent earned 20% of that amount, or ...

0.20 × $14,535 = $2907

The agent earned $2907 on the sale.

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