a company will issue stock and bonds to raise $40,000,000 to finance a project. the company will need to pay…

a company will issue stock and bonds to raise $40,000,000 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 $40,000,000 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 total money raised and commission rate

The total money raised is $40000000$ and the service - commission rate is $2%$ or $0.02$ in decimal form.

Step2: Calculate the service commission

We use the formula: Commission = Total money raised×Commission rate. So, Commission = $40000000\times0.02$. $40000000\times0.02 = 800000$

Answer:

$800000$