Randall is a real estate agent. His earnings are based on a graduated commission. He receives 4% on any sale up to 100,000 and 6% for any amount over the $100,000. Last saturday he sold a house for $109,000. How much did he make selling the house?
Answer:
Randall make $4,540 in commission selling the house
Step-by-step explanation:
we know that
Last saturday Randall sold a house for $109,000
so
1) He receives 4% on any sale up to 100,000
\(4\%=4/100=0.04\)
Multiply $100,000 by 0.04
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2) He receives 6% for any amount over the $100,000
so
\(\$109,000-\$100,000=\$9,000\)
\(6\%=6/100=0.06\)
Multiply $9,000 by 0.06
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Sum the two amounts
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therefore
Randall make $4,540 in commission selling the house