Question

A company will issue stock and bonds to raise

$35,000,000 to finance a project. The company will
need to pay specialty fees and service commission
as part of this process. 0.5% of the money raised
will be spent on specialty fees, and 2% of the
money raised will be spent on service commission.
Calculate the amount of money that will be spent
on specialty fees.
fees = $ [?]
Enter
PH
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Answer 1

$175,000

Explanation:

To calculate the amount of money that will be spent on specialty fees, we need to multiply the total amount of money raised (35,000,000) by the specialty fee percentage (0.5%).

fees = 35,000,000 * 0.005 = 175,000

So, $175,000 will be spent on specialty fees.

To calculate the amount of money that will be spent on service commission, we need to multiply the total amount of money raised (35,000,000) by the service commission percentage (2%).

commission = 35,000,000 * 0.02 = 700,000

So, $700,000 will be spent on service commission.

Answer 2

$175,000.

Explanation:

The amount of money that will be spent on specialty fees is $35,000,000 x 0.5% = $175,000.