Salesperson's Commission

[TGK]

Hello Everyone,

Please help solve this problem. I can up with an answer close to the one posted in the book.

On the sale of any property, a salesperson's compensation is based on the total commission paid to the broker. The sales person receives 30 percent of the first $2,500, 15 percent of any amount between $2,500 and $7,500, and 5 percent of any amount exceeding $7,500. If a property sells for $234,500 and the Broker's commission rate is 6.5 percent, what is the salesperson's total compensation?

 

[Deleted member 4993]

Hello Everyone,

Please help solve this problem. I can up with an answer close to the one posted in the book.

On the sale of any property, a salesperson's compensation is based on the total commission paid to the broker. The sales person receives 30 percent of the first $2,500, 15 percent of any amount between $2,500 and $7,500, and 5 percent of any amount exceeding $7,500. If a property sells for $234,500 and the Broker's commission rate is 6.5 percent, what is the salesperson's total compensation?

First calculate what would be the broker's commisson.


Please share your work with us .

If you are stuck at the beginning tell us and we'll start with the definitions such as "what is commisson"?"

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[TGK]

Hello Everyone,

Please help solve this problem. I can up with an answer close to the one posted in the book.

On the sale of any property, a salesperson's compensation is based on the total commission paid to the broker. The sales person receives 30 percent of the first $2,500, 15 percent of any amount between $2,500 and $7,500, and 5 percent of any amount exceeding $7,500. If a property sells for $234,500 and the Broker's commission rate is 6.5 percent, what is the salesperson's total compensation?

Broker’s Commission = $15,242.50
My Work: $15,242.50
- 2,500.00
$12,742.50
-7,500.00
$5,242.50

Salesperson’s Compensations:
$2,500 x 0.30= $750.00,
$7,500 x 0.15= $1,125
$5,242.50 x 0.5=262.13

My Answer: 750 + 1,125 + 262.13= $2,137.13
The book answer = $1,887.13

Which is correct?

 

[Deleted member 4993]

Broker’s Commission = $15,242.50
My Work: $15,242.50
- 2,500.00
$12,742.50
-7,500.00
$5,242.50

Salesperson’s Compensations:
$2,500 x 0.30= $750.00,
(7500 - 2500)$5000x 0.15= 750 because you already got commisson for the first 2500
(15242.5-7500)$7742.50 x 0.05=387.13

My Answer: 750 + 750 + 387.13 = $1,887.13
The book answer = $1,887.13

Which is correct?

Book is correct

 

[TGK]

Book is correct

I appreciate all you help. Thank you

 

[HallsofIvy]

Broker’s Commission = $15,242.50
My Work: $15,242.50
- 2,500.00
$12,742.50
-7,500.00
$5,242.50

Salesperson’s Compensations:
$2,500 x 0.30= $750.00,
$7,500 x 0.15= $1,125

This is your error. The commission was to be "15 percent of any amount between $2,500 and $7,500".
Since this was more than $7500, it is 15% of 7500- 2500= $5000
$5,000 x 0.15=
$5,242.50 x 0.5=262.13= $750, not $1,125.

My Answer

: 750 + 1,125 + 262.13= $2,137.13
The book answer = $1,887.13

Which is correct?