Sara receives a 9% commission on every car she sells. The car dealership paid $20,000 for a car from an auction. The next day they sold the car for 20% more than they paid. How much commission did Sara earn on the selling price of the car?

Hey there! Your answer to this problem is 2160..

Explanantion:

Since every car Sara sells, she gets 9% of the commission, this means that at the last few step, we would have to give 9% of the total cost to Sara.

If 100% is 20,000, then 50% would be 10,000. But we have to find the cost of 20%. So what we would actually be doing is multiplying 20 with 0.01. 20x0.01 is 0.2 or 0.20.

Then you add the 4,000 to the 20,000 because it states, “the next day, they sold the car 20% more than they paid. This means that you’ll have to add it. 20,000 plus 4000 would be 24,000. So 24,000 would be the cost of the car they sold.

However they didn’t wanna know the cost of the car, they wanted to know how much Sara would get. So you would have to take 9% of the cost of the cost which would be 2,160.

Final result: $2,160