Commission and Simple Interest

Front

What is simple interest?

Back

Simple interest is a method of calculating the interest charge on a loan or financial product. It is calculated using the formula: Interest = Principal x Rate x Time.

Tags

CCSS.7.RP.A.3

Front

How do you calculate simple interest?

Back

To calculate simple interest, use the formula: Interest = Principal x Rate x Time, where Principal is the initial amount of money, Rate is the interest rate (as a decimal), and Time is the time the money is invested or borrowed for, in years.

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CCSS.7.RP.A.3

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What is the formula for calculating total amount with simple interest?

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Total Amount = Principal + Interest.

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CCSS.7.RP.A.3

Front

If you invest $3,000 at a 6.5% simple interest rate for 30 months, how much interest do you earn?

Back

$487.50.

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CCSS.7.RP.A.3

Front

What is commission?

Back

Commission is a fee paid to an employee or agent for services rendered, typically calculated as a percentage of the sales they make.

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CCSS.6.RP.A.3C

Front

How do you calculate commission?

Back

To calculate commission, use the formula: Commission = Sales x Commission Rate.

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CCSS.7.RP.A.3

Front

If Felipe earns 5% commission on $9,650 in sales, how much does he earn?

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$482.50.

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CCSS.6.RP.A.3C

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What is the relationship between commission rate and total sales?

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The commission rate determines how much an individual earns based on their total sales; a higher commission rate results in higher earnings for the same amount of sales.

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CCSS.8.EE.B.5

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If Rachel invests $2,700 at 7% simple interest for 2 years, what is her total amount?

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$3,078.

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CCSS.7.RP.A.3

Front

How do you find the total sales from a known commission earned?

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To find total sales from commission, use the formula: Total Sales = Commission / Commission Rate.