A real estate agent earns an 8% commission on the sale of a house. If the house sells for $300,000,...
GMAT Problem-Solving and Data Analysis : (PS_DA) Questions
A real estate agent earns an \(8\%\) commission on the sale of a house. If the house sells for \(\$300,000\), how much commission does the agent earn?
\(\$2,400\)
\(\$12,000\)
\(\$24,000\)
\(\$30,000\)
1. TRANSLATE the problem information
- Given information:
- Commission rate: \(8\%\)
- House selling price: \(\$300,000\)
- Need to find: Commission amount
- This tells us we need to calculate \(8\%\) of \(\$300,000\)
2. TRANSLATE the percentage to decimal form
- Convert \(8\%\) to decimal: \(8\% = \frac{8}{100} = 0.08\)
- Set up the calculation: \(\mathrm{Commission} = 0.08 \times \$300,000\)
3. SIMPLIFY the multiplication
- Calculate: \(0.08 \times \$300,000 = \$24,000\) (use calculator)
Answer: C - \(\$24,000\)
Why Students Usually Falter on This Problem
Most Common Error Path:
Weak TRANSLATE skill: Students convert \(8\%\) incorrectly to \(0.8\) instead of \(0.08\)
They think "\(8\%\) means 8 tenths" rather than "8 hundredths," so they calculate:
\(0.8 \times \$300,000 = \$240,000\)
Since this isn't among the choices, this leads to confusion and guessing.
Second Most Common Error:
Poor TRANSLATE reasoning: Students calculate a different percentage by mistake
Looking at choice (D) \(\$30,000\), they might think "that looks like \(10\%\) of \(\$300,000\)" and select it, having mixed up \(8\%\) with \(10\%\) in their mental calculation.
This may lead them to select Choice D (\(\$30,000\)).
The Bottom Line:
The key challenge is accurately converting the percentage to decimal form. Students who rush through the percentage-to-decimal conversion or who haven't solidified this foundational skill will struggle with this otherwise straightforward problem.
\(\$2,400\)
\(\$12,000\)
\(\$24,000\)
\(\$30,000\)