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30 June, 16:58

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?

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  1. 30 June, 18:15
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    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.
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