1. Applications of Percents
Pre-Algebra
8-6
Applications of Percents
Learn to find commission, sales tax, and withholding tax.

2. Applications of Percents
Pre-Algebra
8-6
Applications of Percents
Real estate agents often work for commission. A commission is a fee paid to a person who makes a sale. It is usually a percent of the selling price. This percent is called the commission rate.
Often agents are paid a commission plus a regular salary. The total pay is a percent of the sales they make plus a salary.
commission rate  sales = commission

3. Example 1: Multiplying by Percents to Find Commission Amounts
Pre-Algebra
8-6
Applications of Percents
Example 1: Multiplying by Percents to Find Commission Amounts
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?
First find his commission.
4%  $65,000 = c commission rate  sales = commission

4. Applications of Percents
Pre-Algebra
8-6
Applications of Percents
Example 1 Continued
0.04  65,000 = c Change the percent to a decimal.
2600 = c Solve for c.
He earned a commission of $2600 on the sale.
Now find his total pay for last month.
$ $900 = $ commission + salary = total pay
His total pay for last month was $3500.

5. Applications of Percents
Pre-Algebra
8-6
Applications of Percents
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.

6. Example 2: Multiplying by Percents to Find Sales Tax Amounts
Pre-Algebra
8-6
Applications of Percents
Example 2: Multiplying by Percents to Find Sales Tax Amounts
If the sales tax rate is 6.75%, how much tax would JT pay if he bought two CDs at $16.99 each and one DVD for $36.29?
CD: 2 at $ $33.98
DVD: 1 at $ $36.29
$70.27 Total Price
 = Convert tax rate to a decimal and multiply by the total price.
JT would pay $4.74 in sales tax.

7. Applications of Percents
Pre-Algebra
8-6
Applications of Percents
Real estate agents often work for commission. A commission is a fee paid to a person who makes a sale. It is usually a percent of the selling price. This percent is called the commission rate.
Often agents are paid a commission plus a regular salary. The total pay is a percent of the sales they make plus a salary.
commission rate  sales = commission

8. Applications of Percents
Pre-Algebra
8-6
Applications of Percents
Try This: Example 1
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?
First find her commission.
5%  $50,000 = c commission rate  sales = commission

9. Try This: Example 1 Continued
Pre-Algebra
8-6
Applications of Percents
Try This: Example 1 Continued
0.05  50,000 = c Change the percent to a decimal.
2500 = c Solve for c.
The agent earned a commission of $2500 on the sale.
Now find her total pay for last month.
$ $700 = $ commission + salary = total pay
Her total pay for last month was $3200.

10. Applications of Percents
Pre-Algebra
8-6
Applications of Percents
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.

11. Applications of Percents
Pre-Algebra
8-6
Applications of Percents
Try This: Example 2
Brian rents a hotel for $45 per night. He rents for two nights and pays a sales tax of 13%. How much tax did he pay?
$45  2 = $90 Find the total price for the hotel stay.
$90  0.13 = $ Convert tax rate to a decimal and multiply by the total price.
Brian spent $11.70 on sales tax.

12. Applications of Percents
Pre-Algebra
8-6
Applications of Percents
A tax deducted from a person’s earnings as an advance payment of income tax is called withholding tax.

13. Example 3: Using Proportions to Find the Percent of Tax Withheld
Pre-Algebra
8-6
Applications of Percents
Example 3: Using Proportions to Find the Percent of Tax Withheld
Olivia earns $1500 monthly. Of that, $ is withheld for Social Security and Medicare. What percent of Olivia’s earnings are withheld for Social Security and Medicare?
Think: What percent of $1500 is $114.75?
Solve by proportion:
114.75
1500 n
100 =
n  1500 = 100  Find the cross products.

14. Applications of Percents
Pre-Algebra
8-6
Applications of Percents
Example 3 Continued
1500n = 11,475 Divide both sides by 1500.
11,475
1500 n =
n = 7.65
7.65% of Olivia’s earnings is withheld for Social Security and Medicare.

15. Example 4: Dividing by Percents to Find Total Sales
Pre-Algebra
8-6
Applications of Percents
Example 4: Dividing by Percents to Find Total Sales
A furniture sales associate earned $960 in commission in May. If his commission is 12% of sales, how much were his sales in May?
Think: $960 is 12% of what number?
Solve by equation:
960 = 0.12  s Let s = total sales.
960
0.12
= s Divide each side by 0.12.
The associate’s sales in May were $8000.

16. Applications of Percents
Pre-Algebra
8-6
Applications of Percents
Real estate agents often work for commission. A commission is a fee paid to a person who makes a sale. It is usually a percent of the selling price. This percent is called the commission rate.
Often agents are paid a commission plus a regular salary. The total pay is a percent of the sales they make plus a salary.
commission rate  sales = commission

17. Applications of Percents
Pre-Algebra
8-6
Applications of Percents
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.

18. Applications of Percents
Pre-Algebra
8-6
Applications of Percents
A tax deducted from a person’s earnings as an advance payment of income tax is called withholding tax.

19. Applications of Percents
Pre-Algebra
8-6
Applications of Percents
Try This: Example 3
Nick earns $2500 monthly. Of that, $500 is withheld for income tax. What percent of Nick’s earnings are withheld for income tax?
Think: What percent of $2500 is $500?
Solve by proportion:
500
2500 n
100 =
n  2500 = 100  500 Find the cross products.

20. Try This: Example 3 Continued
Pre-Algebra
8-6
Applications of Percents
Try This: Example 3 Continued
2500n = 50,000 Divide both sides by 2500.
50000
2500 n =
n = 20
20% of Nick’s earnings are withheld for income tax.

21. Applications of Percents
Pre-Algebra
8-6
Applications of Percents
Try This: Example 4
A sales associate earned $770 in commission in May. If his commission is 7% of sales, how much were his sales in May?
Think: $770 is 7% of what number?
Solve by equation:
770 = 0.07  s Let s represent total sales.
770
0.07
= s Divide each side by 0.07.
The associate’s sales in May were $11,000.