gmatt1476 wrote:
A novelist pays her agent 15% of the royalties she receives from her novels. She pays her publicist 5% of the royalties, plus a yearly fee. Did the novelist pay more to her agent last year than she paid to her publicist?
(1) The publicist's yearly fee is $2,000.
(2)The novelist earned an average of $3,500 in royalties last year on each of her novels.
DS53541.01
Hi
gmatt1476,
Take a small amount and a large amount and check(1) The publicist's yearly fee is $2,000.
Let her royalties be 1000 then agent gets 150 and Publicist get 2000 + 5% of 1000 so obviously Publicist gets more
Let her royalties be 100,000 then agent gets 15000 and publicist gets 5000 + 2000= 7000, here agent gets more
Hence In suff.
(2)The novelist earned an average of $3,500 in royalties last year on each of her novels.
We have no idea of the yearly fees of the Publicist hence In suff.
Taking 1+2 together
Let there be 1 novel then agent gets 525 and Publicist gets 2000 + 5% of 3500, obviously Publicist gets more.
let there be 1000 Novels then total Royalties 350000, so agent gets 52500 and Publicist gets 17500+2000 =19500, so here agent gets more
hence In suff.
Ans- E