If so, determine how much you will owe your parents.
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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.
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.
To determine how much you will owe your parents, follow these steps:
Step 1: Calculate the additional profit you made:
Profit = Total earnings - Initial investment
Step 2: Determine if your additional profit is above $600:
If Profit > $600, go to step 3
If Profit <= $600, go to step 4
Step 3: Calculate the amount owed to your parents:
Amount owed = (Profit - $600) * 10%
Step 4: You do not owe any money to your parents.
To determine how much you will owe your parents, you'll need to follow these steps:
1. Determine your additional profit: Subtract the initial $300 that your parents are giving you from the total amount earned. For example, if you earned $650 in additional profit, subtract $300 from it, giving you $350.
2. Calculate the amount you exceeded $600: Subtract $600 from the additional profit. In our example, subtract $600 from $350, which equals $50.
3. Calculate 10% of the excess: Multiply the excess amount by 10% (or 0.1) to find out how much you owe your parents. In our example, multiply $50 by 0.1, which gives you $5.
So, in this case, you will owe your parents $5.