Question

Please provide the steps used to solve this problem. A recording artist receives a royalty payment of 7% for each CD sold, and has an agent who gets 4% of what the recording artist gets. What is the artist’s earnings for the CD if the sales total is $2,500,000 ?
Could . you please show me how to get the answer to this problem please and i need it asap

Answer 1

Answer:

$168,000

Explanation:

"7% for each CD sold" is the same as 7% of the sales total. The royalty payment to the recording artist is 7% of $2,500,000:

... royalty = 0.07 × $2,500,000 = $175,000

The recording artist must pay 4% of this amount to the agent, so the agent gets ...

... fee = 0.04 × $175,000 = $7,000

The artist's net earnings are the amount of the royalty less the fee that is paid to the agent:

... earnings = $175,000 -7,000 = $168,000

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Shorter way

The agent gets 4% of the artist's royalty, so the artist ends up with 96% of the royalty amount. That amount is 7% of CD sales, so the amount paid to the artist is ...

... 96%×7%×sales = 0.96×0.07×sales = 0.0672 × sales

For this problem, that amount is ...

... 0.0672 × 2,500,000 = 168,000