A salesperson received $1,140 commission for selling a car priced at $28,500. What rate of commission was paid?
A2.5%
B5.0%
C3.5%
D4.0%
Answer & Solution
Correct answer: D. 4.0%
1. The commission is a percent of the sale price, so the rate is the commission divided by the price.
2. Divide: 1,140 divided by 28,500.
3. This gives 0.04 as a decimal.
4. Move the decimal point two places to the right and add a percent sign: 4.0%.
5. Check with units: 0.04 x 28,500 dollars = 1,140 dollars, matching the commission paid.
6. 2.5% of the price would be only $712.50 and 5.0% would be $1,425, so both fail the check.
7. 3.5% is the near-miss trap for anyone who estimates 1,140/28,500 as roughly 1/28 instead of computing it.
_Source: OpenStax Prealgebra (CC BY 4.0), Ch 6 "Percents", section 6.3 Solve Sales Tax, Commission, and Discount Applications_
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