Basic Mathematics for College Students

6.3 Applications of Percent 539

Self Check 4

SELLING INSURANCEAn insurance

salesperson receives a 4.1%

commission on each $120

premium paid by a client. What is

the amount of the commission on

this premium?

Now TryProblem 25

EXAMPLE (^5) Jewelry Sales A jewelry salesperson earned a commission
of $448 for selling a diamond ring priced at $5,600. Find the commission rate.
StrategyWe will identify the commission and the dollar amount of the sale.
WHYThen we can use the commission formula to find the unknown commission
rate.
SolutionThe commission is $448 and the dollar amount of the sale is $5,600.
This is the commission formula.
Substitute $448 for the commission
and $5,600 for the sales. Let x
represent the unknown commission
rate.
We can drop the dollar signs. To undo the multiplication
by 5,600 and isolate xon the right side of the equation,
divide both sides by 5,600.
On the right side, remove the common
factor of 5,600 from the numerator
and denominator. On the left side,
divide 448 by 5,600.
To write the decimal 0.08 as a percent, multiply it by 100
by moving the decimal point two places to the right, and
then insert a % symbol.
The commission rate paid the salesperson on the sale of the diamond ring was 8%.
8%x
008%x

0.08

x5,600

1

5,600

1

448

5,600



x5,600

5,600

$448  x $5,600

Commissioncommission rate  sales

Self Check 5

SELLING ELECTRONICSIf the

commission on a $430 digital

camcorder is $21.50, what is the

commission rate?

Now TryProblem 29

0.08

5,600 (^)  448.00
 448 00
0

3 Find the percent of increase or decrease.
Percents can be used to describe how a quantity has changed. For
example, consider the table on the right, which shows the number
of television channels that the average U.S. home received in 2000
and 2007.
EXAMPLE (^4) Appliance Sales The commission rate for a salesperson
at an appliance store is 16.5%. Find his commission from the sale of a refrigerator
that costs $500.
StrategyWe will identify the commission rate and the dollar amount of the sale.
WHYThen we can use the commission formula to find the unknown amount of
the commission.
SolutionThe commission rate is 16.5% and the dollar amount of the sale is $500.
This is the commission formula.
Substitute 16.5% for the commission
rate and $500 for the sales.
Write 16.5% as a decimal: 16.5% 0.165.
Do the multiplication.
The commission earned on the sale of the $500 refrigerator is $82.50.

$82.50

0.165$500

 16.5% $500

Commissioncommission ratesales

Number of television

channels that the

average U.S. home

Year received

2000 61

2007 119

Source:The Nielsen Company

0.1

3

6

2

5

 500

82.500