A property agent charges a commission of 5% on the first $50 000 and 2.25% on the remaining selling price of a piece of property. Given that the agent sells a property for $240 000, find the amount of commission he receives.
Answers
Answer:
$ 6,775
Step-by-step explanation:
% of commission = 5%
Amount for commission = $50,000
Commission amount = (5/100)*50000
= $2500
Amount to be paid = $50,000 - $2,500
= $47,500
Remaining selling price = $2,40,000 - $50,000
= $ 1,90,000
% of commission on Remaining selling price = 2.25%
Amount for commission on Remaining selling price = (2.25/100)*190000
= $ 4,275
Amount to be paid on the Remaining selling price = $ 1,90,000 - $ 4,275
= $ 1,85,725
Total amount to be paid to buy the property = $ 47,500 + $ 1,85,725
= $ 2,33,225
Total Amount of commission he receives = $ 2,40,000 - 2,33,225
= $ 6,775