Nancy is a realtor and earns income based on a graduated commission scale. Nancy is paid $3, 000 plus 2.5% on the first $140,000; 1.5% on the next $300,000 and .5% on the remaining value over $440,000. Determine Nancy's commission earned after selling a $625,000 house.
A) $5,500
B) $6,400
C) $9,750
D) $10,860
E) $11,925

Question

Quizplus · Accepted Answer

Nancy's commission on the first $140,000 is $3,000 + (2.5% x $140,000) = $5,900.Her commission on the next $300,000 is (1.5% x $300,000) = $4,500.Her commission on the remaining $185,000 is (0.5% x $185,000) = $925.Therefore, her total commission is $5,900 + $4,500 + $925 = $11,925.

Nancy Is a Realtor and Earns Income Based on a Graduated