How can I simplify this problem? Apparently, the answer is 7.32%, but I can't seem to simplify it.
.06 × (1 - .30) ($1,500,000 + .12 × $1,000,000) / ($1,500,000 + $1,000,000).
Using the steps Parenthesis, Exponents, Multiplication, Division, Addition, Subtraction, so...
Parenthesis: .12x1mill = 120,000
Then, 120,000 + 1,500,000 = 1,620,000.
Then, 1-.30 = .70
Then, .70 x 1,620,000 = 1,134,000
Then, 1,134,000 x .06 = 68040 (I keep getting this number)
But when I divide the bottom number ($1,500,000 + $1,000,000) = 2,500,000
= 68040 / 2,500,000 doesn't

Question

How can I simplify this problem? Apparently, the answer is 7.32%, but I can't seem to simplify it.
.06 × (1 - .30) ($1,500,000 + .12 × $1,000,000) /                                     ($1,500,000 + $1,000,000).
Using the steps Parenthesis, Exponents, Multiplication, Division, Addition, Subtraction, so...
Parenthesis: .12x1mill = 120,000
Then, 120,000 + 1,500,000 = 1,620,000.
Then, 1-.30 = .70
Then, .70 x 1,620,000 = 1,134,000
Then, 1,134,000 x .06 = 68040 (I keep getting this number)
But when I divide the bottom number ($1,500,000 + $1,000,000) = 2,500,000
= 68040 / 2,500,000 doesn't

cunningham2000 · Answer

68040 divided by 2,500,000 equals .027216 or 2.72%  this is the correct answer unless you wrote the equation down incorrectly.  FYI   Multiplication and division are done left to right, whichever comes first in the equation and it does make a difference.

anonymous · Answer

Well, here's the orginal equation:
.06 × (1 - .30) ($1,500,000 + .12 × $1,000,000) /                                     ($1,500,000 + $1,000,000).
But my textbook says it equals 7.32%, but I'm not getting that number.  Do you know how they are?

cunningham2000 · Answer

The book most likely has an error.  It happens.  I typed it in Excel and it calculated the 2.72% answer.

anonymous · Answer

Wow, ok