7
QuizMultiple Choice

Variable Earnings — Quiz

Question 7 • Financial Math

A graduated commission employee makes 3 point 5 percent interest on the first 50 dollars comma 000 in sales and 6 point 5 percent interest on all sales over 50 dollars comma 000 Which of these expressions represents the employee’s total earnings on 81 dollars comma 500 in sales?

Answer
A
3 point 5 times open paren 50 comma 000 close paren plus 6 point 5 times open paren 31 comma 500 close paren
B
0 point 0 3 5 times open paren 50 comma 000 close paren plus 0 point 0 6 5 times open paren 31 comma 500 close paren
C
0 point 3 5 times open paren 50 comma 000 close paren plus 0 point 6 5 times open paren 31 comma 500 close paren
D
0 point 0 3 5 times open paren 50 comma 000 close paren plus 0 point 0 6 5 times open paren 81 comma 500 close paren

Explanation

The first $50,000 earns 3.5%, which is 0.035 as a decimal. Sales above $50,000 are $81,500 − $50,000 = $31,500, and that amount earns 6.5%, or 0.065. So total earnings are represented by 0.035(50,000) + 0.065(31,500), choice B.

AI-written and checked against the verified answer.

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