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.
h)
Will you have to pay your parents?
O Yes
O No
No
To determine if you will have to pay your parents, we need to compare the additional profit you make with the threshold of $600. If the additional profit is greater than $600, you will owe 10% of the earnings above $600 to your parents; otherwise, you won't have to pay them.
Let's calculate the additional profit you would make with the $300 your parents want to give you:
Additional profit = $300
Since the additional profit is less than $600, you will not have to pay your parents. Therefore, the answer is:
O No
To determine whether you will have to pay your parents, we need to compare the additional profit you make to $600.
If the additional profit is less than or equal to $600, you will not have to pay your parents. However, if the additional profit is greater than $600, you will have to pay them 10% of the earnings above $600.
Given that your parents are giving you an additional $300, the total additional profit is $300.
Since $300 is less than $600, you will not have to pay your parents.
Thus, the answer is No, you will not have to pay your parents in this scenario.