Real-Life Math -- Solution
You are preparing to meet with a potential advertising client.
You want to prepare some numbers to strengthen your sales pitch.
How
much is the monthly total including tax?
$2,000 x 0.05 = $100
in tax
One month including tax would cost $2,100.
How
much is one year including tax?
$6,000 x 0.05 = $300 in tax
One
year including tax would cost $6,300.
If the client commits
to one year instead of one month, how much will they save each month?
$6,300
/ 12 = $525 a month at the one-year rate
$2,100 - $525 = $1,575
The
client saves $1,575 each month when they commit to one year.
What
percentage of savings is that?
$1,575 / $2,100 = 75 percent
Your client can save 75 percent by buying a whole year of ad space.
"Basic
accounting is necessary in this job," says Paul Ellis. He works in the advertising
department of a fashion magazine. He does invoices, processes payments and
collects debts.