Question

If John Legend makes $14,000,000 a year, how much would the image consultant make over the next 4 years of his contract, charging a 5% commission?

A) $2,800,000
B) $2,100,000
C) $3,500,000
D) $2,000,000

Answer 1

To calculate the image consultant's earnings over 4 years, calculate the annual commission by multiplying John Legend's annual earnings by the commission rate, the total earnings over the contract period, which is A. $2,800,000.

Step-by-step explanation:

The student has asked how much an image consultant would make over the next 4 years if they charge a 5% commission on John Legend's annual earnings of $14,000,000. First, we need to calculate the total commission for one year by multiplying John Legend's earnings by the commission rate:

Annual Commission = $14,000,000 × 0.05

Now, multiply the annual commission by 4 to find the total commission over 4 years:

Total Commission Over 4 Years = Annual Commission × 4

After performing the calculations, the image consultant would earn:

• Annual Commission: $14,000,000 × 0.05 = $700,000
• Total Commission Over 4 Years: $700,000 × 4 = $2,800,000

The correct answer is A) $2,800,000.