Question

An auto insurance company pays 10% commission to its agents for each new insurance

policy they sell. How much commission does an agent make on a $1,000 policy?

options are,
100$
120$
150$

Answer 1

the commission amount does an agent make is $100

Explanation:

The computation of the commission amount does an agent make is as follows:

= Commission percentage × policy amount

= 10% × $1,000

= $100

Hence the commission amount does an agent make is $100

It could be determined by applying the given formula so that the correct amount could come