Question

A graphic artist receives a royalty payment of 5% for each game sold, and has an agent who gets 3% of what the graphic artist gets.
What is the artist’s earnings for the game if the sales total is $2,000,000 ?

Answer 1

The graphic artist receives 5% amount of the total sales as his royalty payment. The 3% from this royalty payment goes to his agent and remaining 97% are with the artist. So first we calculate the initial 5% amount the graphic artist will recieve, which will be:

$0.05(2,000,000)= 100,000$

$100,000 is the total royalty payment the graphic artist will receive. From this amount 3% goes to agent and 97% goes with artist. So the actual amount graphic artist will earn will be:

$0.97(100,000) = 97,000$

Thus, the graphic artist earns $97,000