8-6 Applications of Percents Course 3 Warm Up Warm Up Problem of the Day Problem of the Day Lesson Presentation Lesson Presentation

Warm Up Estimate % of out of % of out of % 120 Course Applications of Percents 30% Possible answers:

Problem of the Day What is the percent discount on a purchase of three shirts if you take advantage of the shirt sale? All Shirts on Sale! Buy 2—Get the Third for Half Price! Course Applications of Percents 16 % 2 3

Learn to find commission, sales tax, and withholding tax. Course Applications of Percents

Vocabulary commission commission rate sales tax withholding tax Insert Lesson Title Here Course Applications of Percents

Course Applications of Percents 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 ratesalescommission commission rate  sales = commission

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? Additional Example 1: Multiplying by Percents to Find Commission Amounts Course Applications of Percents First find his commission. 4%  $65,000 = ccommission rate  sales = commission

0.04  65,000 = c Change the percent to a decimal. Additional Example 1 Continued Course Applications of Percents 2600 = 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.

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? Try This: Example 1 Course Applications of Percents First find her commission. 5%  $50,000 = ccommission rate  sales = commission

0.05  50,000 = c Change the percent to a decimal. Try This: Example 1 Continued Course Applications of Percents 2500 = 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.

Course Applications of Percents 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.

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? Additional Example 2: Multiplying by Percents to Find Sales Tax Amounts Course Applications of Percents CD: 2 at $16.99$33.98 DVD: 1 at $36.29 $36.29 $70.27Total Price  = Convert tax rate to a decimal and multiply by the total price. Adrian would pay $4.74 in sales tax.

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? Insert Lesson Title Here Course Applications of Percents $45  2 = $90 Find the total price for the hotel stay. $90  0.13 = $11.70 Convert tax rate to a decimal and multiply by the total price. Amy spent $11.70 on sales tax.

Course Applications of Percents A tax deducted from a person’s earnings as an advance payment of income tax is called withholding tax.

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? Additional Example 3: Using Proportions to Find the Percent of Tax Withheld Course Applications of Percents Think: What percent of $1500 is $114.75? Solve by proportion: n 100 = n  1500 = 100  Find the cross products.

Additional Example 3 Continued Course Applications of Percents n = % of Anna’s earnings is withheld for Social Security and Medicare. 11, n = 1500n = 11,475Divide both sides by 1500.

BJ earns $2500 monthly. Of that, $500 is withheld for income tax. What percent of BJ’s earnings are withheld for income tax? Try This: Example 3 Course Applications of Percents Think: What percent of $2500 is $500? Solve by proportion: n 100 = n  2500 = 100  500Find the cross products.

Try This: Example 3 Continued Course Applications of Percents n = 20 20% of BJ’s earnings are withheld for income tax n = 2500n = 50,000Divide both sides by 2500.

A furniture sales associate earned $960 in commission in May. If his commission is 12% of sales, how much were his sales in May? Additional Example 4: Dividing by Percents to Find Total Sales Course Applications of Percents Think: $960 is 12% of what number? Solve by equation: 960 = 0.12  sLet s = total sales = s Divide each side by The associate’s sales in May were $8000.

A sales associate earned $770 in commission in May. If his commission is 7% of sales, how much were his sales in May? Try This: Example 4 Course Applications of Percents Think: $770 is 7% of what number? Solve by equation: 770 = 0.07  sLet s represent total sales = s Divide each side by The associate’s sales in May were $11,000.

Lesson Quiz: Part 1 1. The lunch bill was $8, and you want to leave a 15% tip. How much should you tip? 2. The sales tax is 5.75%, and the shirt costs $20. What is the total cost of the shirt? 3. 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? $21.15 $1.20 Insert Lesson Title Here Course Applications of Percents 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? Insert Lesson Title Here 30% Course Applications of Percents