A real estate agent gets 3.5%3.5% commission on the first $80,000$80,000 on the value of a home and he gets an additional 2%2% commission for the remaining balance. How much commission in total will he earn if he sells a home valued at $420,000$420,000?
A commission is expressed as a percentage of the value of goods sold.
First, draw a line diagram to further understand the given values.
Solve for the remaining balance by subtracting $80,000$80,000 from the value of the house, which is $420,000$420,000.
Remaining BalanceRemaining Balance
==
$420,000−80,000$420,000−80,000
==
$340,000$340,000
Next, solve the commission for the first $80,000$80,000 of the value, which will be 3.5%3.5%.
$3.5%×80,000$3.5%×80,000
==
3.5100×80,00013.5100×80,0001
Convert values to fraction
==
$0.035×80,000$0.035×80,000
Simplify
==
$2800$2800
Then, solve the commission for the rest of the value, which will be 2%2%.
$2%×340,000$2%×340,000
==
2100×340,00012100×340,0001
Convert values to fraction
==
$0.02×340,000$0.02×340,000
Simplify
==
$6800$6800
Finally, add the two commissions to get the total commission
Total CommissionTotal Commission
==
28002800++68006800
==
$9600$9600
Hence, the real estate agent will get a total commission of $9600_$9600−−−−−.
$9600$9600
Question 2 of 2
2. Question
A real estate agent gets 3%3% commission on the first $90,000$90,000 on the value of a home and he gets an additional 1.5%1.5% commission for the remaining balance. How much commission in total will he earn if he sells a home valued at $690,000$690,000?