8-6 Applications of Percents
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1 Learn to find commission, sales tax, and withholding tax.
2 commission commission rate sales tax withholding tax Vocabulary
3 Real estate agents often work for commission. A commission is a fee paid to a person who makes a sale. It is usually a percent of the selling price. This percent is called the commission rate. Often agents are paid a commission plus a regular salary. The total pay is a percent of the sales they make plus a salary. commission rate sales = commission
4 Additional Example 1: Multiplying by Percents to Find Commission Amounts A real-estate agent is paid a monthly salary of $900 plus commission. Last month he sold one condominium for $65,000, earning a 4% commission on the sale. How much was his commission? What was his total pay last month? First find his commission. 4% $65,000 = c commission rate sales = commission
5 Additional Example 1 Continued ,000 = c Change the percent to a decimal = c Solve for c. He earned a commission of $2600 on the sale. Now find his total pay for last month. $ $900 = $3500 commission + salary = total pay His total pay for last month was $3500.
6 Try This: Example 1 A car sales agent is paid a monthly salary of $700 plus commission. Last month she sold one sports car for $50,000, earning a 5% commission on the sale. How much was her commission? What was her total pay last month? First find her commission. 5% $50,000 = c commission rate sales = commission
7 Try This: Example 1 Continued ,000 = c Change the percent to a decimal = c Solve for c. The agent earned a commission of $2500 on the sale. Now find her total pay for last month. $ $700 = $3200 commission + salary = total pay Her total pay for last month was $3200.
8 Sales tax is the tax on the sale of an item or service. It is a percent of the purchase price and is collected by the seller.
9 Additional Example 2: Multiplying by Percents to Find Sales Tax Amounts If the sales tax rate is 6.75%, how much tax would Adrian pay if he bought two CDs at $16.99 each and one DVD for $36.29? CD: 2 at $16.99 $33.98 DVD: 1 at $36.29 $36.29 $70.27 Total Price = Convert tax rate to a decimal and multiply by the total price. Adrian would pay $4.74 in sales tax.
10 Try This: Example 2 Amy rents a hotel for $45 per night. She rents for two nights and pays a sales tax of 13%. How much tax did she pay? $45 2 = $90 Find the total price for the hotel stay. $ = $11.70 Convert tax rate to a decimal and multiply by the total price. Amy spent $11.70 on sales tax.
11 A tax deducted from a person s earnings as an advance payment of income tax is called withholding tax.
12 Additional Example 3: Using Proportions to Find the Percent of Tax Withheld Anna earns $1500 monthly. Of that, $ is withheld for Social Security and Medicare. What percent of Anna s earnings are withheld for Social Security and Medicare? Think: What percent of $1500 is $114.75? Solve by proportion: n 100 = n 1500 = Find the cross products.
13 Additional Example 3 Continued 1500n = 11,475 Divide both sides by n = 11, n = % of Anna s earnings is withheld for Social Security and Medicare.
14 Try This: Example 3 BJ earns $2500 monthly. Of that, $500 is withheld for income tax. What percent of BJ s earnings are withheld for income tax? Think: What percent of $2500 is $500? Solve by proportion: n 100 = n 2500 = Find the cross products.
15 Try This: Example 3 Continued 2500n = 50,000 Divide both sides by n = n = 20 20% of BJ s earnings are withheld for income tax.
16 Additional Example 4: Dividing by Percents to Find Total Sales A furniture sales associate earned $960 in commission in May. If his commission is 12% of sales, how much were his sales in May? Think: $960 is 12% of what number? Solve by equation: 960 = 0.12 s Let s = total sales = s Divide each side by The associate s sales in May were $8000.
17 Try This: Example 4 A sales associate earned $770 in commission in May. If his commission is 7% of sales, how much were his sales in May? Think: $770 is 7% of what number? Solve by equation: 770 = 0.07 s Let s represent total sales = s Divide each side by The associate s sales in May were $11,000.
18 Lesson Quiz: Part 1 1. The lunch bill was $8, and you want to leave a 15% tip. How much should you tip? $ The sales tax is 5.75%, and the shirt costs $20. What is the total cost of the shirt? $ As of 2001, the minimum hourly wage was $5.15. Congress proposed to increase it to $6.15 per hour. To the nearest percent, what is the proposed percent increase in the minimum wage? 19%
19 Lesson Quiz: Part 2 4. It costs a business $13.30 to make its product. To satisfy investors, the company needs to make $4 profit per unit. To the nearest percent, what should be the company s markup? 30%
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