A real estate agent makes 4.5% commission on every property she sells. How much commission does she make on a sale of a house for $132,500.00? Don't understand how to do the problem. Can you help me? Thank you
4.5% (132500)
= 5962.50
Of course! I'd be happy to help you understand how to solve this problem.
To calculate the commission that the real estate agent earns, you will need to multiply the sale price of the house by the commission rate. In this case, the sale price is $132,500.00 and the commission rate is 4.5%.
To find the commission amount, you can follow these steps:
Step 1: Convert the commission rate to decimal form. In this case, 4.5% can be converted to decimal form by dividing it by 100. So, 4.5% in decimal form is 0.045.
Step 2: Multiply the sale price by the commission rate expressed as a decimal. Using the formula: commission = sale price * commission rate.
In this case, the commission will be calculated as:
commission = $132,500.00 * 0.045
Step 3: Calculate the result of the multiplication.
commission = $5,962.50
So, the real estate agent would earn a commission of $5,962.50 on the sale of a house for $132,500.00 at a commission rate of 4.5%.
I hope this explanation helps you understand how to solve the problem. Let me know if you have any more questions!