a company will issue stock and bonds to raise $35,000,000 to finance a project. the company will need to pay…

a company will issue stock and bonds to raise $35,000,000 to finance a project. the company will need to pay specialty fees and service commission as part of this process. 0.5% of the money raised will be spent on specialty fees, and 2% of the money raised will be spent on service commission. calculate the amount of money that will be spent on service commission. commission = $?

a company will issue stock and bonds to raise $35,000,000 to finance a project. the company will need to pay specialty fees and service commission as part of this process. 0.5% of the money raised will be spent on specialty fees, and 2% of the money raised will be spent on service commission. calculate the amount of money that will be spent on service commission. commission = $?

Answer

Explanation:

Step1: Identify the formula

The amount of service - commission is calculated as a percentage of the total money raised. The formula is $Commission = \text{Percentage of commission}\times\text{Total money raised}$.

Step2: Convert the percentage to a decimal

The percentage of service - commission is 2%. To use it in the formula, we convert it to a decimal. $2%=\frac{2}{100}=0.02$.

Step3: Calculate the commission

The total money raised is $35000000$. Using the formula $Commission = 0.02\times35000000$. $Commission = 700000$.

Answer:

$700000$