Financial Maths, STD1 F1 2022 HSC 21 v1

A real estate agent's commission for selling houses is 3% for the first $\$600\,000$ of the sale price and 1.8% for any amount over $\$600\,000$.

Calculate the commission earned in selling a house for $\$950\,000$. (2 marks)

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$\$24\,300$

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$\text{Commission on first}\ \$600\,000=3\%\times 600\,000=\$18\,000$

$\text{Amount over}\ \$600\,000= 950\,000- 600\,000=\$350\,000$

$\text{Commission on remainder}=1.8\%\times 350\,000=\$6300$

$\text{Total commission}= 18\,000+ 6300=\$24\,300$