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. If so, determine how much you will owe your parents.
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To determine how much you will owe your parents, follow these steps:
Step 1: Calculate your additional profit
Subtract the $300 your parents are giving you from the total earnings. Let's say you earned $650, so your additional profit is $650 - $300 = $350.
Step 2: Calculate the amount above $600
If your additional profit is above $600, you will owe your parents 10% of the earnings above $600. In this case, your earnings above $600 are $350 - $600 = $50.
Step 3: Calculate the amount owed to your parents
Multiply the earnings above $600 by 10% (0.10) to calculate the percentage owed. In this case, you owe 0.10 * $50 = $5 to your parents.
Therefore, you will owe your parents $5.
To determine how much you will owe your parents, you need to calculate the additional profit you made above $600 and then calculate 10% of that amount.
1. Subtract $600 from the additional profit you made. In this case, the additional profit is $300, so the calculation would be: $300 - $600 = -$300.
2. Since the result is negative, it means that the additional profit is less than $600, so you don't owe your parents anything.
Therefore, you won't owe your parents any money in this scenario.