Question

Stella makes \[2\% \] royalties on a book she wrote. How much money did her book earn in sales last year if she made \[\$ 53,000\] in royalties?

Answer 1

Hint: To solve this question, we need to first find out how much is \[1\% \] of the total money earned by her book. This can be done by using the fact that she makes \[2\% \] royalties on a book, which was equal to \[\$ 53,000\] last year. Next, we simply need to multiply the value of \[1\% \] of the total money by 100, so that we get \[100\% \] of the total money, which is the total money.

Complete step-by-step answer:
According to the question, Stella makes \[2\% \] royalties on a book she wrote. That means, for every \[\$ 100\] her book makes, she makes \[\$ 2\] as her royalty.
Now, it is asked in the question that we need to find the amount of money her book made last year, if her amount of royalties was \[\$ 53,000\] .
For this, let the amount of money made by her book be \[x\] dollars.
Then, \[2\% \] of \[x\] equals \[\$ 53,000\] .
To simplify calculation, we will convert the percentage into fractional form. This gives us the following:
  \[\dfrac{2}{{100}} \times x = 53,000\] .
By dividing both sides by 2, we obtain
  \[\dfrac{1}{{100}} \times x = 26,500\] .
Now, to obtain \[x\] , we need to multiply both sides by 100.
On multiplying both sides by 100, we get:
  \[x = 26,500 \times 100 = \$ 2,650,000\] .
Thus, if Stella makes \[2\% \] royalties on a book she wrote, and she made \[\$ 53,000\] in royalties, then the money earned by her book will be \[\$ 2,650,000\] .
So, the correct answer is “ \[\$ 2,650,000\] ”.

Note: This method uses the unitary method to calculate the total money. Alternatively, we can also use the concept of profit and loss. We can use the formula of profit percentage (Stella’s royalty) to find the selling price (total money made by her book last year) by taking her amount of royalty last year as the net profit earned.