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An agent sold a piece of land for Kshs 2,500,000. The seller received Kshs 2,000,000 after the agent's commission. Calculate the agent's commission as a percentage of the selling price.

Mathematics

ScanSolve AI Answer

Answer

20%20\%

Step-by-step solution

2 steps
  1. Determine the agent's commission in Kshs.

    The agent's commission is the difference between the selling price of the land and the amount the seller received.

    Agent’s Commission=Selling Price−Amount Received by Seller\text{Agent's Commission} = \text{Selling Price} - \text{Amount Received by Seller} Agent’s Commission=Kshs 2,500,000−Kshs 2,000,000\text{Agent's Commission} = \text{Kshs } 2,500,000 - \text{Kshs } 2,000,000 Agent’s Commission=Kshs 500,000\text{Agent's Commission} = \text{Kshs } 500,000
  2. Calculate the percentage commission.

    The percentage commission is calculated by dividing the agent's commission by the total selling price and multiplying by 100%.

    Percentage Commission=Agent’s CommissionSelling Price×100%\text{Percentage Commission} = \frac{\text{Agent's Commission}}{\text{Selling Price}} \times 100\% Percentage Commission=Kshs 500,000Kshs 2,500,000×100%\text{Percentage Commission} = \frac{\text{Kshs } 500,000}{\text{Kshs } 2,500,000} \times 100\% Percentage Commission=525×100%\text{Percentage Commission} = \frac{5}{25} \times 100\% Percentage Commission=15×100%\text{Percentage Commission} = \frac{1}{5} \times 100\% Percentage Commission=0.2×100%\text{Percentage Commission} = 0.2 \times 100\% Percentage Commission=20%\text{Percentage Commission} = \boxed{20\%}
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