Question

Joe Popoff, a collection agent, collected 90% of a debt of $5,600.00 that had been overdue 90 days. This collection rate was 5% more than the average collection rate for that agenr. The agent charged 25% commission. What are the net proceeds?

Answer 1

You are given the debt collected by Joe Popoff with a 90% of a debt of $5,600.00 that had been overdue 90 days. This collection rate was 5% more than the average collection rate for that agent. The agent charged 25% commission. You are asked to find the net proceeds. 

Amount collected
= $5,600 * 0.90
= $5,040

Commision
= $5,040 * 0.25
= $1,260

Net Proceeds
= $5,040 - $1,260
= $3,780