Question

Kevin is an insurance salesman. When he sells a policy, he makes 20 percent of the policy premium (P) up front; then each year the policy is active, he receives 15 percent of the original premium. Which equation could be used to figure his total commission on a policy that has been active for five years?

C=0.80P

C=0.20P + 0.15P

C=0.35P + 4(0.15)

C=0.95P

Answer 1

Answer: The correct option is D

C=0.95P

Explanation:

He makes 20percent of the policy premium 20p

He receives 15 percent of the original premium 15p

Total commission on a policy that has been active for five years

0.20p+5(0.15p)

0.20p+0.75p

0.95P

The equation that could be used to figure out his total commission on a policy is C=0.95P

Answer 2

option (D) is correct.

Total commission on the policy is 0.95P

Explanation:

Let the policy premium be P.

According to question,

Kevin makes 20 percent of the policy premium (P) up front denoted as 0.20P

Also, each year the policy is active, he receives 15 percent of the original premium mathematically written as 0.15 P

Given the policy has been active for 5 years then he receives 15 percent of the original premium every year. for 5 years it will be 5 (0.15P) = 0.75 P

Thus, Total commission on the policy is 0.20P + 0.75P = 0.95P

Thus, option (D) is correct.

Total commission on the policy is 0.95P