Question

José was paid an 8 percent commission on the used car that he sold. The used car lot had bought the car from a seller for $8,500 and had marked up the price by 20 percent to the selling price. How much did José earn for the sale?
$136
$680
$816
$2,380

Answer 1

To find out how much José earned from the sale of the used car, we first need to determine the selling price of the car.

1. Calculate the selling price of the car:
- The car was bought for $8,500.
- The lot marked up the price by 20%.

\[
\text{Selling Price} = \text{Cost Price} + (20\% \text{ of Cost Price})
\]
\[
\text{Selling Price} = 8500 + (0.20 \times 8500)
\]
\[
\text{Selling Price} = 8500 + 1700 = 10200
\]

2. Now calculate José's commission:
- José earns an 8 percent commission on the selling price.

\[
\text{José’s Earnings} = 8\% \text{ of Selling Price}
\]
\[
\text{José’s Earnings} = 0.08 \times 10200
\]
\[
\text{José’s Earnings} = 816
\]

Thus, José earned **$816** from the sale of the car.

So, the correct answer is **$816**.