Question

Find the commission on a $1,250 sale with a commission rate of 5%.

Answer 1

Essentially, we must take 5% of $1250. When we drop the percent sign, we move the decimal 2 places to the left, giving .05. Then "of" means multiply. We take $1250 and multiply times .05, giving 
$62..50 

Another way to do it is to take 10%, or $125. 
Then 5% is half of that. Half of $125 is $62.50 We can do that by dividing $125 by 2. I did it in my head. Others might do it on paper. Still others might have a calculator handy and say $125 divided by 2 on the calculator. We should all get the same answer unless one person spaces out or is tired. It happens!

Answer 2

5% of 1250....turn percent to decimal...." of " means multiply
0.05(1250) = 62.50 <==