Question

An incentive clause in Barry Bonds contract allows for a 3.4% bonus if he hits over 719 home runs in this season. His contract is currently valued at $14, 500,000 What would the bonus be worth?

Answer 1

The bonus would be worth $493,000.

3.4% = 3.4/100 = 0.034; 3.4% of 14500000 = 0.034(14500000) = 493000.

Answer 2

Percentage of bonus = 3.4% = $\frac{3.4}{100}$= 0.034

Current value of contract = $14, 500,000

To calculate the bonus for the current value we multiply the bonus percentage and the current value

Bonus for the current value = 14, 500,000 * 0.034 = 493,000

So the bonus worth is $493,000