Real-Life Math
Like many multimedia specialists, you're a freelancer.
This means you have many clients rather than one employer.
As a freelancer,
you have to negotiate a contract with each client. Some clients prefer to
pay on an hourly basis. But many prefer to pay on a project basis -- this
way they know exactly what the entire project will cost.
Your new
client is the Hip sHop, a seller of hip hop and urban-inspired clothing. They
want you to develop a website for them with lots of features, including animations
and video.
Based on the features they want and the time it will take
you, your normal rate for such a project would be $6,500.
You're not
sure how they'll react to this number. As with many new businesses, cash is
probably in short supply right now. To help out new businesses, you typically
offer a 10 percent discount. You can also offer the option of letting them
pay in 12 monthly installments.
Based on the above information, and
assuming you must charge 8 percent tax on top of your fees, how much will
your client pay each month for the next 12 months?