Question

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.

you earned $36,750

determine how much you will owe your parents.

Answer 1

To determine how much you will owe your parents, we first need to calculate the additional profit you made above $600.

Additional profit = $36,750 - $600 = $36,150

Since this exceeds $600, we need to calculate 10% of the earnings above $600.

Amount owed to parents = 10% of ($36,150 - $600)

Amount owed to parents = 10% of $35,550

Amount owed to parents = 0.10 * $35,550

Amount owed to parents = $3,555

Therefore, you will owe your parents $3,555.