A certain realtor earns a 6 percent commission on any home

Hi VJesus12,

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: C

GMAT assassins aren't born, they're made,
Rich

VJesus12 wrote: ↑

Sat Nov 30, 2019 5:02 am

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, how much commission does he earn after taxes?

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

[spoiler]OA=C[/spoiler]

Source: Manhattan GMAT

The realtor gets 750,000 x 0.06 = $45,000 in commission, and he pays 45,000 x 0.2 = $9,000 in taxes. Thus he is left with 45,000 - 9,000 = $36,000 after taxes.

Answer: C