What was the amount received by the agency?

Question

Bob's Rental hired the Friendly Collection Agency to collect debts totaling $12,750. The agency collected 70% of the accounts and charged 15% commission for collecting them. What was the amount received by the agency? The alternatives are as follows a. $10,837.50 , b.$7,012.50 , c. $8,925 and d. $7,586.25

Answer 1

Friendly Collection Agency received 15% OF 70% OF $12,750

 

0.15(0.7)(12750) = $1338.75

 

However, based on our answer choices, what you are obviously

looking for is how much Bob's Rental received

 

Bob's Rental got 85% OF 70% OF $12,750

0.85(0.7)(12750) = $7586.25

 

 

Note: OF in these problems means multiply