A painting by a famous impressionist sold through an auction house where the sale price is not publicly disclosed. The auction house works on a commission rate if 10%. They earned a commission of $400,000 on this painting. What was the price of the painting.
0.10 x = $400,000
x = $4,000,000
To determine the price of the painting, we need to divide the commission earned by the auction house by the commission rate. In this case, the commission rate is 10%.
Let's use the following formula to calculate the price:
Commission earned = Commission rate * Price of the painting
We know that the auction house earned a commission of $400,000, and the commission rate is 10%. We can now rearrange the formula to solve for the price:
Price of the painting = Commission earned / Commission rate
Substituting the given values:
Price of the painting = $400,000 / 0.10
Dividing $400,000 by 0.10, we find:
Price of the painting = $4,000,000
Therefore, the price of the painting was $4,000,000.