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2.4 A real estate agent receives \( 3 \% \) commission on the selling price of the house she sells. 2.4.1 How much commission would she earn on a house that se for R1,5 million?

Ask by Pritchard Ross. in South Africa
Mar 06,2025

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Answer

The commission earned is R45,000.

Solution

To find the commission earned by the real estate agent on a house that sells for R1,500,000, we need to calculate 3% of the selling price. The formula to calculate commission is: \[ \text{Commission} = \text{Selling Price} \times \text{Commission Rate} \] Given: - Selling Price = R1,500,000 - Commission Rate = 3% Substitute the values into the formula: \[ \text{Commission} = 1,500,000 \times 0.03 \] Now, we can calculate the commission earned by the real estate agent. Calculate the value by following steps: - step0: Calculate: \(1500000\times 0.03\) - step1: Multiply the numbers: \(45000\)

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To calculate the commission, simply multiply the selling price of the house by the commission rate. If a house sells for R1.5 million and the commission rate is 3%, the calculation would be: \( R1,500,000 \times 0.03 = R45,000 \). Therefore, the real estate agent would earn R45,000 in commission from this sale. Real estate commissions can vary widely by location and market conditions, but they often follow a similar percentage structure. Agents might negotiate lower rates for high-value transactions or offer a sliding scale to retain clients. Understanding these nuances can better prepare you for buying or selling a home!

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