a company will issue stock and bonds to raise $25,000,000 to finance a project. the company will need to pay…

a company will issue stock and bonds to raise $25,000,000 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 $25,000,000 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 money raised. The formula is $Commission = Percentage\times Money\ raised$.

Step2: Substitute the values

The percentage of service - commission is $2%=0.02$, and the money raised is $25000000$. So, $Commission = 0.02\times25000000$.

Step3: Calculate the result

$0.02\times25000000 = 500000$.

Answer:

$500000$