Question

At a real estate agency, an agent sold a house for $397,000. 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

1. $97,265

2. $17,865

Explanation:

Step one:

given data

cost of the house= $397,000.

we are told that the commission is 4.5% real estate agency

and also the agent commission is 20%

Step two:

1. How much did the agency make on the house?

this amount is 20% plus 4.5% together.

=20/100*397,000 +4.5/100*397,000

=0.2*397,000. +0.045*397,000.

=79400+17865

=97,265

The agent made a total of $97,265 on the house

2. How much did the agent earn in commission?

in commission, the rate is 4.5% which amounts to $17,865