A broker lists a property for $87,500 at 7% commission on the first $50,000 and 5% on the balance. The property sells for 4% less than asking price. What commission was earned?

Question

Payne

Business

9 May, 20:26

A broker lists a property for $87,500 at 7% commission on the first $50,000 and 5% on the balance. The property sells for 4% less than asking price. What commission was earned?

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Answers (1)

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Lamont Rowland · Answer 1

The commision earned for the broker will be of 4,860 dollars

Explanation:

First, we solve for the selling price

the property sold at 4% less that is

87,500 x (1 - 0.04) = 84,000

Now we calculate the commision

the commision is 7% on the first 50,000 and the n 4% for the rest:

50,000 x 7% = 3,500

(84,000 - 50,000) x 4% = 1,360

total commision 3,500 + 1,360 = 4,860