Question

Tim works in a music store and earns a 3.8% commission on each sale. If Tim sells a banjo and earns $22.25, what was the price of the banjo? Round your answer to the nearest cent.

Answer 1

Percentage of commission that Time gets on each sale = 3.8%
Amount of commission earned by Tim by selling a banjo = $22.25
Let us assume the actual price of the Banjo = x dollars
Then
3.8% * x = 22.25
(3.8/100) * x = 22.25
3.8x = 22.25 * 100
3.8x = 2225
x = 2225/3,8 dollars
= 585.526 dollars
= 585.53 dollars
So the original price of the banjo that was sold by Tim was $585.53. I hope you have clearly understood the procedure.