College Math Placement Practice Test

What is the total amount of commission calculated from a base salary of $10,000 and a 15% commission on $90,000?

1. $15,000

2. $13,500

3. $16,000

4. $14,000

The correct answer is: $13,500

To determine the total amount of commission, we start by calculating the commission itself. The commission rate is 15%, and it applies to the amount of $90,000. To find the commission, we multiply the commission rate by the total amount to which it applies: \[ \text{Commission} = \text{Commission Rate} \times \text{Sales Amount} \] Substituting the given values: \[ \text{Commission} = 0.15 \times 90,000 = 13,500 \] Next, to find the total amount including the base salary, we add the base salary of $10,000 to the commission calculated: \[ \text{Total Amount} = \text{Base Salary} + \text{Commission} \] This becomes: \[ \text{Total Amount} = 10,000 + 13,500 = 23,500 \] However, the question specifically asks only for the total amount of commission, which is $13,500. Thus, the answer provided aligns correctly with the understanding of calculating the commission based on the given sales amount and rate. The misinterpretation comes from adding the base salary in the choices, which can