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Real-Life Math

You are a music producer. You have been hired by a band that will pay you $5,000. They have also promised you 15 percent of the first year's profits from this album.

Fifteen percent can be a great thing, depending on the band. "Knowing how much of the pie you can have can be inspirational," says music producer Bruce Levens.

But it is important to remember that not all bands will be successful. "In the music industry, 15 percent of crap is still crap!" says Levens.

You figure that you will work with the band for at least 6 40-hour weeks. They're paying you $5,000. How much will you be making per hour?

Suppose the band sells 100,000 albums in their first year. Each album sells for $18. How much profit will you make from that?

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OCAP believes that financial literacy and understanding the financial aid process are critical aspects of college planning and student success. OCAP staff who work with students, parents, educators and community partners in the areas of personal finance education, state and federal financial aid, and student loan management do not provide financial, investment, legal, and/or tax advice. This website and all information provided is for general educational purposes only, and is not intended to be construed as financial, investment, legal, and/or tax advice.