Question

a real estate agent earns a commission of 4% of the selling price for each house he sells. How expensive of a house does he have to sell to earn $7000?

Answer 1

Given that rate of commission earned by the real estate agent = 4%

Given that required commission that real estate agents wants to earn = $7000.

Now we have to find about how expensive of a house does he have to sell to earn $7000.

So let the cost of house = $x

then commission earned = 4% of x

Given commision is $7000 so both quantities will be equal and we get equation:

4% of x = 7000

0.04x = 7000

x = 7000/0.04

x = 175000

Hence final answer is $175000.