Financial Maths, STD2 EQ-Bank 10 MC

An author receives a 15% royalty on book sales. In the first quarter, 12000 copies were printed and 8400 copies were sold at $32.50 each.

What is the author's royalty payment for the first quarter?

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$A$

Show Worked Solution

$\text{Copies sold} = 8400$

$\text{Total sales}\ =8400 \times 32.50\ =$273\,000$

$\text{Royalty payment}=15\% \times 273\,000= 0.15\times 273\,000=$40\,950$

$\Rightarrow A$