Question

A man sold his house for $125,000. After paying he broker his commission, the man received $116,875. What was the broker’s commission percentage?

Answer 1

The broker's commission was 6.5%

Explanation:

Selling price - commission = net funds received. Leet c represent the commission rate as a decimal fraction:

$125,000 - $125,000c = $116,875

Solve for c. To do this, subtract $116,875 from both sides:

$8,125 = $125,000c. Then c = 0.065

The broker's commission was 6.5%