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Real-Life Activities

Real-Life Math -- Solution

You're a personnel recruiter hammering out a deal with an oil and gas company in order to help them find a top-level executive. These are the numbers you propose:

  1. If the executive earns $12,000 per month, how much do you stand to receive if the client pays you within 15 days?

    First you must calculate the annual salary:

    $12,000 x 12 months = $144,000

    The executive will earn $144,000 annually.

    You agreed to take 15 percent if the client is paid within 15 days. What is 15 percent of $144,000?

    $144,000 x 0.15 = $21,600

    If the client pays within 15 days, you could earn $21,600 commission.

  2. How much could you earn if the company agrees to pay within 30 days?

    The client agreed to pay 20 percent if the sum is received within 30 days.

    $144,000 x 0.20 = $28,800

    If the client pays within in 30 days, you stand to earn $28,800.

"You use figures to hammer out deals," says David Spry, a personnel recruiter. "You might ask for 15 to 30 percent of an annual salary."