Problema Solution

A travel agent receives a 7% commission on the base fare of a customer-that is the fare before sales tax is added. If the total fare charged to a customer comes to $753.84 including 5.5% sales tax, how much commission should the agent receive?

Answer provided by our tutors

let


x = the base fare


0.07x = the commission the agent receives


0.07x + x + 0.055x = 753.84


by solving we find:


x = $670.08


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0.07*670.08 = $46.91


the agent receives a commission of $46.91.