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Real-Life Math

Agents are probably best known for their ability to put together a deal. But agents know that good math skills can make or break a situation. And since their earnings depend on their clients' earnings, they have a big stake in every deal.

You are an agent for a hot young writer who is about to choose the publishing house that will publish his next 5 books. All offers are good, but you need to decide which is best in financial terms.

Deal 1. Moonstone Publishing

  • $5.5 million for the first book, $7 million for the second book and $7 million each for the final 3 books
  • Guaranteed $1 million per book for movie rights
  • 10 percent of audio book sales

Deal 2. W and R Entertainment Industries Inc.

  • 5 books at $6 million each
  • 10 percent of all movie productions, 2 guaranteed movies
  • 5 percent of paperback sales

Deal 3. Big Deal Books

  • 5 books at $2.5 million each
  • 5 percent of total paperback sales of each book
  • 5 percent of total overseas publishing fees of each book
  • 15 percent of all movie productions, 2 movies

You also know the following facts:

  • Movie productions are expected to be worth $60 million each
  • Paperback sales have a projected total value of $120 million
  • Overseas publishing fees should be worth $8 million per book
  • Audio book sales are worth $24 million total

Don't forget to calculate your share -- you get 15 percent.

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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.