Here we are given the information that an insurance agent receives 16% commission on every premium paid.
Now we are given that a premium of $497.69 is paid.
Let us say $x is the commission paid on the policy with a premium of $497.69.
Let us try to find the amount x here.
So we have to find 16% of 497.69 to get the commission amount x.
So finding 16% of 497.69.
x= 16% of 497.69 = 0.16*497.69 = 79.63
Answer: Commission of $79.63 is paid on a policy with a premium of $497.69.