8
QuizMultiple Choice

Variable Earnings

Question 8 • SHS Alt Personal Finance - 2021

Hank is a salaried plus commission employee. Hank has a monthly salary of $2,500 and earns 5.5% commission on all sales. Which of the following expressions represents Hank's total earnings in one month if he has $6,300 in sales?

Answer
A
2,500 + (0.055)(6,300)
B
2,500 + (5.5)(6,300)
C
(2,500) (5.5) + 6,300
D
(2,500) (0.055) + 6,300

Explanation

Hank’s total monthly earnings are his $2,500 salary plus his commission. Convert 5.5% to the decimal 0.055, then calculate commission as 0.055 × $6,300. Therefore the expression is 2,500 + (0.055)(6,300), choice A.

AI-written and checked against the verified answer.

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