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Natalie is a real estate agent and earns a 3% commission on all homes she sells. She estimates that she will earn $8,250 on the next house she sells. She actually earns $9,210. What was Natalie’s estimate for the selling price of the home? What was the actual selling price of the home?

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Using the percentage principle, the estimated and actual sale price of the Home are $275, 000 and $307,000 respectively.

  • Commission on sale = 3%

Estimated commison = $8250

Let Estimated sale price = P

3% × P = 8250

0.03p = 8250

p = 8250 / 3

p = $275000

Actual commission earned = $9210

Let Actual sale price = P

3% × P = 9210

0.03p = 9210

p = 9210 / 3

p = $307,000

Therefore, the estimated and actual sale price are $275,000 and $307,000 respectively.

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