Question 755007: I need help solving word problems. I always have trouble with them. Here's my problem, and then I'll follow it with what I tried.
Trevor has just finished writing a book. The publisher has given him two options: receiving $20,000 up front and 8% of the sales of the book or $50,000 up front and 5% of the sales of the book. What do the sales have to be for Trevor to make the same amount from each option?
Here's what I tried doing:
I want this:
option #1 = option #2
$20,000 + 8%x= $50,000 + 5%x
Simplifying:
20,000 + 0.08x = 50,000 + 0.05x
Solving:
20,000+ 0.08x- 0.05x=50,000
0.03x + 20,000= 50,000
0.03x +20,000 - 20,000 = 50,000-20,000
0.03x= 30,000
Then, dividing both sides by 0.03 leaves me with:
x= 1,000,000
Is this correct?
Thank-you for your time!
Answer by solver91311(24713)   (Show Source):
You can put this solution on YOUR website!
Exactly. You could have verified it yourself simply by calculating 20,000 + (0.08 * 1,000,000) and comparing the result to 50,000 + (0.05 * 1,000,000)
Super Double Plus Extra Credit a. Assume our budding author has a severe lack of self-esteem. Which of the alternatives would have the best result if he was certain that he would not sell 1,000,000 copies of his book? b. What is the opportunity cost if sales turned out to be 1,100,000?
John
Egw to Beta kai to Sigma
My calculator said it, I believe it, that settles it
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