Joe Popoff, a collection agent, collected 90% of a debt of $5,600.00 that had been overdue 90 days. This collection rate was 5% more than the average collection rate for that agenr. The agent charged 25% commission. What are the net proceeds?

Question

Mathematics

Lucia Sampson

30 May, 19:23

Joe Popoff, a collection agent, collected 90% of a debt of $5,600.00 that had been overdue 90 days. This collection rate was 5% more than the average collection rate for that agenr. The agent charged 25% commission. What are the net proceeds?

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Samuel Carney · Answer 1

You are given the debt collected by Joe Popoff with a 90% of a debt of $5,600.00 that had been overdue 90 days. This collection rate was 5% more than the average collection rate for that agent. The agent charged 25% commission. You are asked to find the net proceeds.

Amount collected

= $5,600 * 0.90

= $5,040

Commision

= $5,040 * 0.25

= $1,260

Net Proceeds

= $5,040 - $1,260

= $3,780