Nitin Is Paid on a Graduated Commission Scale

question 177

Multiple Choice

Nitin is paid on a graduated commission scale. He receives commission at the rate of 2.5% for the first $5,000 of sales in a week, 4% on the next $10,000, and 4.5% on all further sales. What is Nitin's average rate of commission in a week in which his sales are $30,000?

• A) 3.67%
• B) 4%
• C) 3.33%
• D) 3.75%
• E) 4.25%

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Definitions:

Price Level

The comprehensive average of current prices for goods and services in the economic sector.

World War II

A global conflict that lasted from 1939 to 1945, involving most of the world's nations, including all of the great powers, eventually forming two opposing military alliances: the Allies and the Axis.

Nominal Interest Rate

The interest rate expressed in dollars of current value (that is, not adjusted for inflation) as a percentage of the amount loaned; the interest rate specified on the loan agreement.

Expected Inflation

The rate at which the general level of prices for goods and services is rising, as anticipated by consumers and businesses.