6 5 Applications of Percents Do Now How

6 -5 Applications of Percents Do Now How much is 7% of $36? $2. 52

6 -5 Applications of Percents Learn to do real-life problems involving percent, including mark ups, discounts, tax, tip, and commission

6 -5 Applications of Percents • Sales tax is a tax that is added onto the price of an item purchased and is used to fund the government. It is usually given as a percentage whose amount varies from place to place. For example, the sales tax in New Jersey is 7% while in New York it is 8%. We treat sales tax as a percent increase when we need to do calculations.

6 -5 Applications of Percents Example A Tom bought a TV for $750. The tax rate in his state is 5%. How much tax will he have to pay? What will be the total amount Tom will pay for the TV? Tax = $37. 50 Total = $787. 50

6 -5 Applications of Percents Other Percent Increases • Tip • Sales tax • Markups—increase from wholesale price to retail price

6 -5 Applications of Percents • Discounts are taken OFF the price of a purchase. They are an example of a percent decrease.

6 -5 Applications of Percents Example B Alex is buying a new phone for $450. The store is offering a discount of 35%. How much money will she save? How much will the phone cost? Discount = $157. 50 Total = $292. 50

6 -5 Applications of Percents Other Percent Decreases • Discounts • Coupons • Income taxes

6 -5 Applications of Percents • Salespeople often work on commission. What that means is that they get to keep a certain percentage of their sales. For example, if Julia works on 10% commission and sells $100 worth of merchandise, she gets to keep $10. It is used as a method for motivating employees to sell the products.

6 -5 Applications of Percents Example C Katlyn works at a car dealership. She earns 4% commission on all of her sales. If she sold a car for $39, 000, how much would she earn in commission? Commission = $1, 560 Katlyn also earns a monthly salary of $2, 100. What would her total income for this month be? Total Income = $3, 660

6 -5 Applications of Percents 1. The lunch bill was $26. 78, and you want to leave an 18% tip. How much should you tip? $4. 82 2. The lunch bill was $26. 78, and you want to leave an 18% tip. How much is the total cost? $31. 60 3. The $62 sweater you want is on sale for 35% off. What is the new cost of the sweater? $40. 30 4. A $15. 99 DVD was marked up 75% when the movie won several awards. What is the new cost of the DVD? $27. 98 5. 4

6 -5 Applications of Percents 5. Mia earn 5% commission on each car she sells. If she sold a $26, 500 car, how much commission $1325 will she receive? 6. A $65 videogame was 20% off plus 7. 5% tax. What is the cost of the videogame? $55. 90 7. A real-estate agent is paid a monthly salary of $900 plus commission. Last month he sold one condominium for $65, 000, earning 4% commission on the sale. How much was his commission? What was his total pay last month? $2600; $3500

6 -5 Applications of Percents Extra Example 1 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 commission sales =

6 -5 Applications of Percents Extra Example 1 continued 0. 04 65, 000 = c 2600 = c Change the percent to a decimal. Solve for c. He earned a commission of $2600 on the sale. Now find his total pay for last month. $2600 + $900 = $3500 commission + salary = total pay. His total pay for last month was $3500.

6 -5 Applications of Percents Extra Example 2 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 commission sales =

6 -5 Applications of Percents Extra Example 2 continued 0. 05 50, 000 = c 2500 = c Change the percent to a decimal. Solve for c. The agent earned a commission of $2500 on the sale. Now find her total pay for last month. $2500 + $700 = $3200 commission + salary = total pay. Her total pay for last month was $3200.

6 -5 Applications of Percents Extra Example 3 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 DVD: 1 at $36. 29 $33. 98 $36. 29 $70. 27 Total Price 0. 0675 70. 27 = 4. 743225 Write the tax rate as a decimal and multiply by the total price. Adrian would pay $4. 74 in sales tax.

6 -5 Applications of Percents Extra Example 4 Amy stays in a hotel for $45 per night. She stays 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. $90 0. 13 = $11. 70 Write the tax rate as a decimal and multiply by the total price. Amy spent $11. 70 on sales tax.