4
practice testMultiple Choice

Practice Test

Question 4 • Personal Finance

Bob gets paid an annual salary of 30 dollars comma 000 and earns 5 percent commission on all sales he makes. If Bob wants to make 6 dollars comma 000 this month, how much in sales does he need to have?

Answer
A
120 dollars comma 000
B
70 dollars comma 000
C
90 dollars comma 000
D
50 dollars comma 000

Explanation

Bob’s annual salary of $30,000 is $2,500 per month ($30,000 ÷ 12). To earn $6,000 this month, he needs $3,500 in commission ($6,000 − $2,500). Since commission is 5% of sales, he needs $70,000 in sales ($3,500 ÷ 0.05), so the correct choice is $70,000.

AI-written and checked against the verified answer.

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