Question

You are considering the services of three different employment agencies, all of which can get you a job that starts at $2,000 a month. Agency A charges 50 percent of the first month's gross salary. Agency B charges 10 percent of your monthly salary for the first six months. Agency C charges a $100 up-front fee and a flat fee of $500 when you are placed. Compare the three choices. Which of these offers the least expensive overall fee?​

Answer 1

Agency C offers the least expensive overall fee

Explanation:

Alone from gross salary, you would make 24000 a year.

Agency A

24000 - ( 2000 x 0.5)

= 23,000

$1000 fee

Agency B

24000 - ( 2000 x 0.1 ) x 6

= 24000 - 200 x 6

= 24000 - 1200

= 22,800

$1200 fee

Agency C

24000 - (500 + 100)

= 24000 - 600

= 23,400

$600 fee