Question

A graduated commission employee makes 3.5% interest on the first $50,000 in sales and 6.5% interest on all sales over $50,000. Which of the following expressions represents the employee’s total earnings on $81,500 in sales? a. (0.035)(50,000) + (0.065)(81,500) b. (0.035)(50,000) + (0.065)(31,500) c. (0.35)(50,000) + (0.65)(31,500) d. (3.5)(50,000) + (6.5)(31,500)

Answer 1

I believe the answer is B

Answer 2

b. (0.035)(50,000) + (0.065)(31,500)

Explanation:

Given, there is an interest of 3.5% on the first $50,000 in sales,

So, the earning for first sale = 3.5% of 50000 = 0.035(50,000)

Now,

Total amount of sale = $ 81,500,

Thus, the amount of second sale = $ 81,500 - $ 50,000 = $ 31, 500,

Here, there is an interest of 6.5% on second sale,

So, the earning in second sale = 6.5 % of 31, 500 = 0.065(31,500)

Hence, the total earning on both sales = 0.035(50,000) + 0.065(31,500)

Option 'b' is correct.