Question

An insurance agent receives 16% commission on every premium paid. how much commission is paid on a policy with a premium of $497.69? $31.10 $79.63 $311.06 $796.30

Answer 1

Answer:

  $79.63

Step-by-step explanation:

You can figure this by estimating. 16% is a little less than 20%, which is 1/5. $497.69 is almost $500. So, 1/5 of that is almost $100, and a little less than that is about $80. The closest answer choice is $79.63.

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If you want to figure it exactly, you can do the multiplication ...

  16% of $497.69 = 0.16 × $497.69 = $79.6304 ≈ $79.63