We want to find how much commission does an insurance agent makes. To do so, we will use the percent equation.
part = percent * whole
We know that an insurance company pays a 12 % commission to its agents for each new insurance policy they sell, and the insurance agent makes a $1000 policy. Let's draw a bar diagram to represent the problem. In the diagram, c will represent the commission of the agent.
Now we will apply the percent equation to the given situation. For simplicity, we can temporarily ignore the units.
part = percent * whole [0.4em] ↓ [0.4em]
c = 12 % * 1000
We need to write the percent as a decimal before we can solve the equation that we got. To write a percent as a decimal, we will ignore the percent symbol and move the decimal point two places to the left.
Therefore, 12 % is equal to 0.12.
c = 12 % * 1000 [0.4em] ↓ [0.4em]
c = 0.12 * 1000
Finally, we will solve the equation for c.
