a company will issue stock and bonds to raise $50,000,000 to finance a project. the company will need to pay…

a company will issue stock and bonds to raise $50,000,000 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 specialty fees. fees = $?

a company will issue stock and bonds to raise $50,000,000 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 specialty fees. fees = $?

Answer

Explanation:

Step1: Identify the formula

The amount of specialty - fees is calculated as a percentage of the money raised. The formula is $F = P\times r$, where $F$ is the amount of fees, $P$ is the principal amount (money raised), and $r$ is the percentage rate of the fees.

Step2: Convert the percentage to a decimal

The percentage of specialty fees is $0.5%$. To use it in the formula, we convert it to a decimal. $0.5%=\frac{0.5}{100}=0.005$.

Step3: Calculate the specialty - fees

The money raised $P = 50000000$, and $r = 0.005$. Substitute these values into the formula $F = P\times r$. So $F=50000000\times0.005 = 250000$.

Answer:

$250000$