To determine if you will have to pay your parents and how much you will owe them, we need to calculate the additional profit you make with the extra $300 and compare it to the threshold of $600.
Starting with $10,000 and receiving an additional $300, your total funds would amount to $10,300.
Additional profit = Total funds - Initial amount
Additional profit = $10,300 - $10,000
Additional profit = $300
Since the additional profit is exactly $300, which is less than the $600 threshold, you will not have to pay anything to your parents.
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, you start with $10,000. 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.
Will you have to pay your parents, if so, determine how much you will owe your parents
1 answer
1 answer