to expand your business, you hire a banker to raise $1 mm in order to finance a building designed by an…
to expand your business, you hire a banker to raise $1 mm in order to finance a building designed by an architect. you also hire an attorney for 12 hours, and a computer programmer for 15 hours. what is the total cost for these services?\n|computer programmer|$125/hour|architect|$14,000 flat fee|\n|attorney|$175/hour|banker|2% of capital raised|\n$?
Answer
Explanation:
Step1: Calculate banker's cost
The capital raised is $1\ mm = 1000000$. The banker's fee is 2% of the capital raised. So the banker's cost is $1000000\times 0.02=20000$.
Step2: Calculate attorney's cost
The attorney is hired for 12 hours at a rate of $175 per - hour. So the attorney's cost is $12\times175 = 2100$.
Step3: Calculate computer - programmer's cost
The computer programmer is hired for 15 hours at a rate of $125 per - hour. So the computer - programmer's cost is $15\times125=1875$.
Step4: Calculate total cost
Add the costs of the banker, attorney, computer programmer, and architect. The architect's cost is a flat - fee of $14000$. The total cost $C=20000 + 2100+1875 + 14000$. $C=37975$.
Answer:
$37975$