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Financial Maths, STD2 F1 2022 HSC 21

A real estate agent's commission for selling houses is 2% for the first $800 000 of the sale price and 1.5% for any amount over $800 000.

Calculate the commission earned in selling a house for $1 500 000.  (2 marks)

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`$26\ 500`

Show Worked Solution
`text{Commission}` `=800\ 000 xx 2text{%} + (1\ 500\ 000-800\ 000) xx 1.5text{%}`  
  `=800\ 000 xx 0.02 + 700\ 000 xx 0.015`  
  `=16\ 000 + 10\ 500`  
  `=$26\ 500`  

Financial Maths, STD2 F1 2008 HSC 24a

Bob is employed as a salesman. He is offered two methods of calculating his income.

\begin{array} {|l|}
\hline
\rule{0pt}{2.5ex}\text{Method 1: Commission only of 13% on all sales}\rule[-1ex]{0pt}{0pt} \\
\hline
\rule{0pt}{2.5ex}\text{Method 2: \$350 per week plus a commission of 4.5% on all sales}\rule[-1ex]{0pt}{0pt} \\
\hline
\end{array}

Bob’s research determines that the average sales total per employee per month is $15 670. 

  1. Based on his research, how much could Bob expect to earn in a year if he were to choose Method 1?   (2 marks)

  2. If Bob were to choose a method of payment based on the average sales figures, state which method he should choose in order to earn the greater income. Justify your answer with appropriate calculations.   (3 marks)

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  1. `$24\ 445.20`
  2. `text(Proof)\ \ text{(See Worked Solutions)}`
Show Worked Solution

i.   `text(Method 1)`

`text(Yearly sales)` `= 12 xx 15\ 670`
  `= 188\ 040`
`:.\ text(Earnings)` `= text(13%) xx 188\ 040`
  `= $24\ 445.20`

 

ii.  `text(Method 2)`

`text(In 1 Year, Weekly Wage)` `= 350 xx 52`
  `= 18\ 200`
`text(Commission)` `= text(4.5%) xx 188\ 040`
  `= 8461.80`
`text(Total earnings)` `= 18\ 200 + 8461.80`
  `= $26\ 661.80`

 

`:.\ text(Bob should choose Method 2.)`