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# A certain realtor earns a 6 percent commission on any home

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Marshall & McDonough Moderator
Joined: 13 Apr 2015
Posts: 1684
Location: India
A certain realtor earns a 6 percent commission on any home  [#permalink]

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14 May 2017, 01:06
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15% (low)

Question Stats:

82% (01:20) correct 18% (01:31) wrong based on 76 sessions

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A certain realtor earns a 6 percent commission on any home that he sells, and he must pay 20 percent of the that commission in taxes. If the realtor sells a home for $750,000, how much commission does he earn after taxes? A)$9,000
B) $18,000 C)$36,000
D) $37,500 E)$45,000
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Joined: 02 Sep 2009
Posts: 60647
A certain realtor earns a 6 percent commission on any home  [#permalink]

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14 May 2017, 01:24
Vyshak wrote:
A certain realtor earns a 6 percent commission on any home that he sells, and he must pay 20 percent of the that commission in taxes. If the realtor sells a home for $750,000, how much commission does he earn after taxes? A)$9,000
B) $18,000 C)$36,000
D) $37,500 E)$45,000

$$\750,000*\frac{6}{100}*\frac{80}{100} = 75*6*8 = \36,000$$.

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A certain realtor earns a 6 percent commission on any home  [#permalink]

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14 May 2017, 03:33
1
A certain realtor earns a 6 percent commission on any home that he sells, and he must pay 20 percent of the that commission in taxes. If the realtor sells a home for $750,000, how much commission does he earn after taxes? Realtor sells home for$750,000
Earns 6% commission = 6% of 750,000 = $$\frac{6}{100}$$ x 750000 = 45000
Taxes on commission is 20% = 20% of 45000 = $$\frac{20}{100}$$ x 45000 = 9000
Therefore commission he earns after taxes = 45000 - 9000 = $36000 ............. Answer C .... _________________ Kindly press "+1 Kudos" to appreciate Manager Joined: 09 Jan 2016 Posts: 98 GPA: 3.4 WE: General Management (Human Resources) Re: A certain realtor earns a 6 percent commission on any home [#permalink] ### Show Tags 14 May 2017, 10:18 Vyshak wrote: A certain realtor earns a 6 percent commission on any home that he sells, and he must pay 20 percent of the that commission in taxes. If the realtor sells a home for$750,000, how much commission does he earn after taxes?

A) $9,000 B)$18,000
C) $36,000 D)$37,500
E) $45,000$75000*.06*.8= $36000 Intern Joined: 08 Apr 2017 Posts: 20 Schools: Kellogg '21 (D) Re: A certain realtor earns a 6 percent commission on any home [#permalink] ### Show Tags 14 May 2017, 10:29 He gets 6% of the sale. 750k*.06=45k Then it asks for 20% of the commission not the sale. 45k*.20=9k Answer is A.9,000 Sent from my SM-G935P using GMAT Club Forum mobile app Math Expert Joined: 02 Sep 2009 Posts: 60647 Re: A certain realtor earns a 6 percent commission on any home [#permalink] ### Show Tags 14 May 2017, 10:37 Eric8923 wrote: He gets 6% of the sale. 750k*.06=45k Then it asks for 20% of the commission not the sale. 45k*.20=9k Answer is A.9,000 Sent from my SM-G935P using GMAT Club Forum mobile app The correct answer is C, not A as explained above (you can check correct answer under the spoiler in the original post). For example, here: https://gmatclub.com/forum/a-certain-re ... l#p1851677 The point is that he pays 20% tax, so he's left with 80% of 45,000. Hope it's clear. _________________ Intern Joined: 08 Apr 2017 Posts: 20 Schools: Kellogg '21 (D) Re: A certain realtor earns a 6 percent commission on any home [#permalink] ### Show Tags 14 May 2017, 11:30 Thanks. Have to make sure I'm careful with the wording. I answered thinking it was asking how much did he pay in taxes. Sent from my SM-G935P using GMAT Club Forum mobile app Target Test Prep Representative Status: Founder & CEO Affiliations: Target Test Prep Joined: 14 Oct 2015 Posts: 9142 Location: United States (CA) Re: A certain realtor earns a 6 percent commission on any home [#permalink] ### Show Tags 18 May 2017, 20:03 Vyshak wrote: A certain realtor earns a 6 percent commission on any home that he sells, and he must pay 20 percent of the that commission in taxes. If the realtor sells a home for$750,000, how much commission does he earn after taxes?

A) $9,000 B)$18,000
C) $36,000 D)$37,500
E) $45,000 Since the realtor has to pay 20 percent of the commission in taxes, he makes 80% of the 6 percent of$750,000; thus, the commission earned after taxes is:

(750,000)(0.06)(0.8) = 36,000 dollars

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# Scott Woodbury-Stewart

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Re: A certain realtor earns a 6 percent commission on any home  [#permalink]

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05 Jun 2017, 11:46
Vyshak wrote:
A certain realtor earns a 6 percent commission on any home that he sells, and he must pay 20 percent of the that commission in taxes. If the realtor sells a home for $750,000, how much commission does he earn after taxes? A)$9,000
B) $18,000 C)$36,000
D) $37,500 E)$45,000

We can solve this question simply by translating the stimulus (question stem) into an algebraic expression

x(.06)(.80)
75,000(.06)(.80)

= 36,000

Why does this work? In order to find the percentage of a given number we simply multiply the given number by a decimal conversion of the given percentage (e.g to find 5 percent of 100 we multiply 100 by .05). So when we multiply x by .06 we have the amount of commission that the realtor earns before taxes. If the realtor has to pay 20 percent of taxes, or in other words has to give away 20 percent of his commission, his profit or rather what he has left is simply 80 percent of his commission.
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Re: A certain realtor earns a 6 percent commission on any home  [#permalink]

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02 Dec 2019, 15:23
Hi All,

We're told that a certain realtor earns a 6 percent commission on any home that he sells - and he must pay 20 percent of that commission in taxes. If the realtor sells a home for $750,000, we're asked how much commission he earns AFTER taxes. This question gives us all of the 'numbers' that we need to perform a calculation, so you should look to perform the calculation in whichever 'format' is easiest for you. 6% of$750,000 = (.06)($750,000) Since 1% of$750,000 = $7,500, you might find it easiest to just multiply$7,500 by 6.... this equals $45,000 20% of$45,000 = (1/5)($45,000) =$9,000

Thus, the commission AFTER taxes is $45,000 -$9,000 = $36,000 Final Answer: GMAT assassins aren't born, they're made, Rich _________________ Contact Rich at: Rich.C@empowergmat.com The Course Used By GMAT Club Moderators To Earn 750+ souvik101990 Score: 760 Q50 V42 ★★★★★ ENGRTOMBA2018 Score: 750 Q49 V44 ★★★★★ Target Test Prep Representative Status: Founder & CEO Affiliations: Target Test Prep Joined: 14 Oct 2015 Posts: 9142 Location: United States (CA) Re: A certain realtor earns a 6 percent commission on any home [#permalink] ### Show Tags 12 Jan 2020, 06:30 Vyshak wrote: A certain realtor earns a 6 percent commission on any home that he sells, and he must pay 20 percent of the that commission in taxes. If the realtor sells a home for$750,000, how much commission does he earn after taxes?

A) $9,000 B)$18,000
C) $36,000 D)$37,500
E) \$45,000

The commission earned after taxes is:

750,000 x 0.06 x 0.8

750,000 x 6/100 x 8/10 = 750 x 6 x 8 = 36,000.

_________________

# Scott Woodbury-Stewart

Founder and CEO

Scott@TargetTestPrep.com
181 Reviews

5-star rated online GMAT quant
self study course

See why Target Test Prep is the top rated GMAT quant course on GMAT Club. Read Our Reviews

If you find one of my posts helpful, please take a moment to click on the "Kudos" button.

Re: A certain realtor earns a 6 percent commission on any home   [#permalink] 12 Jan 2020, 06:30
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