The car would have to sell for $ 487.804 for both job opportunities to pay Jim the same amount.
Solution:
Let car's price be x
Ace Cars says they will pay Jim a 10% commission on the sale price of each car
Therefore,
Jim payment = x + 10 % of x
[tex]Jim\ payment = x + \frac{10}{100} \times x\\\\Jim\ payment = x + 0.1x = 1.1x[/tex]
Budget Cars says they will pay him $500 per week plus a 7.5% commission on the sale price of each car
Jim payment = 500 + 7.5 % of x
[tex]Jim\ payment = 500 + \frac{7.5}{100}x\\\\Jim\ payment = 500 + 0.075x[/tex]
What price would the car have to sell for in order for these two job opportunities to pay Jim the same amount
Therefore,
Both the payment should be equated
1.1x = 500 + 0.075x
1.1x - 0.075x = 500
1.025x = 500
x = 487.804
The car would have to sell for $ 487.804 for both job opportunities to pay Jim the same amount.
