Question

A graduated commission employee makes 3.5% interest on the first $50,000 in sales and 6.5% interest on all sales over $50,000. Which of the following expressions represents the employee’s  total earnings on $81,500 in sales?

Answer 1

Answer

b. (0.035)(50,000) + (0.065)(31,500)

Explanation

3.5% 0f 50,000 = 3.5/100 × 50,000

= 0.035 × 50,000

= 1,750

6.5% × (81,500 - 50,000) = 6.5/100 ×31,500

= 0.065 × 31500

= 2,047.50

Total earning = (0.035 × 50,000 + 0.065 × 31500)

= 1,570 + 2,047.50

= $3,797.50

Answer 2

b. (0.035)(50,000) + (0.065)(31,500)