Question

A property agent charges a commission of 5% on the first $5000 and 2.25% on the remaining selling price of a property. Given that the agent sells a property for $240000, find the amount if commission he receives.

Answer 1

So 5% of $5,000 = $250.00
$240,000-$5,000= $235,000
So $235,000+2.25%= $5875.00
So $5875.00+$250.00=$6,125
He recieves $6,125.00 in commissions.

Answer 2

$5,000 X 0.05 =$250

$240000 - $5000 = $235000 X 0.0225= $5287.50


$250 + $5287.50 = $5537.50