Acme Hardware pays its salespersons $1,000 per month plus a graduated commission of 2% on the first $40,000 and sales of 3% on sales above $40,000. Amy sold $42,000 of merchandise. What is Amy's total pay for the month?

$1,000 + (40,000 * 2%) + (2,000 * 3%).

Here's a shortcut to determine the percent:

40,000 * 2% = 40,000 * .02
2000 * 3% = 2000 * .03

Or, you could learn to use the percent key
on your calculator. :)