Question

A real estate broker's base salary is $18,000. She earns a 4% commission on total sales. How much must she sell to earn $55,000 total? Show your work and explain your reasoning in the space provided below.

Answer 1

The salary of the real estate broker = $18,000

Commission earned on total sales = 4% or 0.04

Total income earnings = $55,000

Let the total sales be = x

Equation becomes :

$18000+0.04x=55000$

$0.04x=55000-18000$

$0.04x=37000$

$x=925000$

Hence, the real estate broker must sell $925,000 worth of real estate to earn $55,000.