Answer:
The artist's earnings for the CD will be $168000.
Step-by-step explanation:
The total sales amount is $2500000
The artist receives a royalty payment of 7%. So, the amount of royalty, the artist receives will be: [tex](\$2500000\times 7\%)= (\$2500000\times 0.07)=\$175000[/tex]
The agent gets 4% of what the recording artist gets. So, the amount of money the agent gets will be: [tex](\$175000\times 4\%)=(\$175000\times 0.04)=\$7000[/tex]
So, the artist’s earnings for the CD will be: [tex](\$175000-\$7000)= \$168000[/tex]
