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The commission rate for a a sale of property by auction are 5% on the first $12000, 3% on the next $15000 and 1% on the remainder of the selling price. Find the total commission paid on the sale property for $45000.

1 Answer

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To find the total commission paid on the sale property for $45,000, we can break down the selling price into different ranges and calculate the commission for each range separately.

First, let's calculate the commission for the first range, which is 5% on the first $12,000:

Commission for the first range = 5% of $12,000 = 0.05 * $12,000 = $600

Next, let's calculate the commission for the second range, which is 3% on the next $15,000:

Commission for the second range = 3% of $15,000 = 0.03 * $15,000 = $450

Finally, let's calculate the commission for the third range, which is 1% on the remainder of the selling price:

Commission for the third range = 1% of ($45,000 - $12,000 - $15,000) = 0.01 * $18,000 = $180

Now, we can find the total commission by adding up the commissions from each range:

Total commission = Commission for the first range + Commission for the second range + Commission for the third range

Total commission = $600 + $450 + $180 = $1,230

Therefore, the total commission paid on the sale property for $45,000 is $1,230.

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