Kevin is an insurance salesman. When he sells a policy, he makes 20 percent of the policy premium (P) up front; then each year the policy is active, he receives 15 percent of the original premium. Which equation could be used to figure his total commission on a policy that has been active for five years?

C=0.80P

C=0.20P + 0.15P

C=0.35P + 4 (0.15)

C=0.95P

Question

Mathematics

Hadley Lindsey

2 June, 12:30

Kevin is an insurance salesman. When he sells a policy, he makes 20 percent of the policy premium (P) up front; then each year the policy is active, he receives 15 percent of the original premium. Which equation could be used to figure his total commission on a policy that has been active for five years?

C=0.80P

C=0.20P + 0.15P

C=0.35P + 4 (0.15)

C=0.95P

+4

Answers (1)

Know the Answer?

Adyson Robinson · Answer 1

option (D) is correct.

Total commission on the policy is 0.95P

Step-by-step explanation:

Let the policy premium be P.

According to question,

Kevin makes 20 percent of the policy premium (P) up front denoted as 0.20P

Also, each year the policy is active, he receives 15 percent of the original premium mathematically written as 0.15 P

Given the policy has been active for 5 years then he receives 15 percent of the original premium every year. for 5 years it will be 5 (0.15P) = 0.75 P

Thus, Total commission on the policy is 0.20P + 0.75P = 0.95P

Thus, option (D) is correct.

Total commission on the policy is 0.95P