Question

13. Online Car Auctioneer charges a commission for classified ads. If the car sells,

the seller is charged 4% of the advertised price, not of the price for which the
car actually sells. If the car doesn't sell, the seller pays nothing. If Barbara
advertises her Cadillac for $12,000 and sells it for $11,200, how much must
she pay for the ad?

Answer 1

Barbara advertised her Cadillac for $12,000 and must pay a 4% commission on the advertised price. After selling her car, she is obliged to pay $480 for the ad.

Step-by-step explanation:

The student has asked a question related to calculating the commission for an advertisement based on the advertised price of a car. In this scenario, Barbara advertised her Cadillac for $12,000 and upon selling it, she must pay 4% of the advertised price. The actual selling price of the car does not affect the commission.

Here's how you calculate the commission:

1. First, you determine the advertised price of the car, which is $12,000.
2. Then, you calculate 4% of the advertised price because that is the commission rate. To do this, multiply the advertising price by 0.04 (4%).
3. $12,000 * 0.04 = $480
4. So, Barbara must pay $480 for the ad.

Answer 2

480

Step-by-step explanation:

4% of 12,000=480