The formula to calculate the Final Price with Auction Premium (FP) is:
\[ FP = HP + (HP \times \left( \frac{PR}{100} \right)) \]
Where:
An auction premium, also known as a buyer’s premium, is an additional fee charged by the auction house on top of the hammer price of an item. This fee is typically a percentage of the hammer price and is paid by the buyer. The auction premium helps cover the costs of running the auction and can vary depending on the auction house and the type of auction. It is important for buyers to be aware of the auction premium as it affects the total cost of the item they are purchasing.
Let's assume the following values:
Using the formula to calculate the Final Price:
\[ FP = 1000 + (1000 \times \left( \frac{15}{100} \right)) = 1000 + 150 = 1150 \text{ dollars} \]
The Final Price is $1,150.00.