Vocabulary Commission- a fee paid to a person who makes a sale. Commission rate- a percent of the selling price.
A real-estate agent is paid a monthly salary of $900 plus commission. Last month he sold one condominium for $65,000, earning a 4% commission on the sale. How much was his commission? What was his total pay last month? Additional Example 1: Multiplying by Percents to Find Commission Amounts First find his commission. 4% $65,000 = ccommission rate sales = commission
0.04 65,000 = c Change the percent to a decimal. Additional Example 1 Continued 2600 = c Solve for c. He earned a commission of $2600 on the sale. Now find his total pay for last month. $2600 + $900 = $3500 commission + salary = total pay. His total pay for last month was $3500.
A car sales agent is paid a monthly salary of $700 plus commission. Last month she sold one sports car for $50,000, earning a 5% commission on the sale. How much was her commission? What was her total pay last month? Check It Out: Example 1
Sales tax is the tax on the sale of an item or service. It is a percent of the purchase price and is collected by the seller.
If the sales tax rate is 6.75%, how much tax would Adrian pay if he bought two CDs at $16.99 each and one DVD for $36.29? Additional Example 2: Multiplying by Percents to Find Sales Tax Amounts CD: 2 at $16.99$33.98 DVD: 1 at $36.29 $36.29 $70.27Total Price 0.0675 70.27 = 4.743225Write the tax rate as a decimal and multiply by the total price. Adrian would pay $4.74 in sales tax.
Check It Out: Example 2 Amy stays in a hotel for $45 per night. She stays for two nights and pays a sales tax of 13%. How much tax did she pay?
Anna earns $1500 monthly. Of that, $114.75 is withheld for Social Security and Medicare. What percent of Anna’s earnings are withheld for Social Security and Medicare? Additional Example 3: Using Proportions to Find the Percent of Earnings Think: What percent of $1500 is $114.75? Set up a proportion. 114.75 1500 n 100 = n 1500 = 100 114.75 Find the cross products.
Additional Example 3 Continued n = 7.65 7.65% of Anna’s earnings is withheld for Social Security and Medicare. 11,475 1500 n = 1500n = 11,475 Divide both sides by 1500. Simplify.
BJ earns $2500 monthly. Of that, $500 is withheld for income tax. What percent of BJ’s earnings are withheld for income tax? Check It Out: Example 3 Think: What percent of $2500 is $500?
A furniture sales associate earned $960 in commission in May. If his commission is 12% of sales, how much were his sales in May? Additional Example 4: Dividing by Percents to Find Total Sales Think: $960 is 12% of what number? Let s = total sales 960 = 0.12 sSet up an equation. 960 0.12 = s Divide each side by 0.12. 8000 = s The associate’s sales in May were $8000. Simplify.
A sales associate earned $770 in commission in May. If his commission is 7% of sales, how much were his sales in May? Check It Out: Example 4 Think: $770 is 7% of what number?