If so, determine how much you will owe your parents.

Question

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Your parents heard about the success of your business and they want to help you out. Suppose they want to give you an additional $300 to put toward your business. However, there’s a catch. If you make more than $600 additional profit, you have to give them 10% of your earnings above $600. For example, if you have earned $650, then you owe 10% of $50, or $5, to your parents.

Answer 1

To determine how much you will owe your parents, you need to calculate the additional profit made and apply the 10% rule. Here's the calculation:

Additional profit = Total profit - Initial profit
Additional profit = $650 - $600
Additional profit = $50

Now, calculate 10% of the additional profit:
Owed amount = 10% of additional profit
Owed amount = 10% of $50
Owed amount = $5

Therefore, you will owe your parents $5.