Question
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
Upstudy AI Solution
Tutor-Verified Answer
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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Simplify this solution The Deep Dive
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!
