A travel agent is booking an extended stay of 8 weeks at a...

A travel agent is booking an extended stay of 8 weeks at a hotel. The hotel rate is $\$ 79.50$ a night. According to the hotel website, "A travel agent commission of $10 \%$ is paid on (or up to) the first seven nights' stay for all commissionable rates." Find the commission the travel agent will earn for this booking.

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Key Concepts

Percentage Calculation

Percentage calculation is a fundamental mathematical concept used to determine a part of a whole expressed in terms per hundred. It is applied here to compute the commission by taking 10% of the applicable amount, meaning that the commission is a fraction of the base rate multiplied by the number of commissionable nights.

Commission Calculation

This concept involves determining the amount earned by applying a percentage rate to a base monetary value. In various industries such as travel and real estate, commissions are calculated by multiplying the applicable rate (for example, a nightly hotel rate) by the number of commissionable units (such as nights stayed) and then applying the agreed-upon commission percentage.

Commissionable Period

This refers to the specific duration for which a commission is applicable. In many contracts, the commission is only paid on part of the total service rendered, such as only the first few nights of a hotel stay. This limitation is designed by the contract and must be factored into any commission calculations.

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