Question

A recording artist receives a royalty payment of 7% for each CD sold, and has an agent who gets 4% of what the recording artist gets. What is the artist’s earnings for the CD if the sales total is $2,500,000 ?

Answer 1

The artist's earnings for the CD will be $168000.

Explanation:

The total sales amount is $2500000

The artist receives a royalty payment of 7%. So, the amount of royalty, the artist receives will be:
`(\$2500000* 7\%)= (\$2500000* 0.07)=\$175000`

The agent gets 4% of what the recording artist gets. So, the amount of money the agent gets will be:
`(\$175000* 4\%)=(\$175000* 0.04)=\$7000`

So, the artist’s earnings for the CD will be:
`(\$175000-\$7000)= \$168000`