Suppose a company did $2,000,000 in annual maintenance in 2007 and expects 90% of...

[Siva]

I don't really understand this question.. Please explain this and provide solution:

Suppose a company did $2,000,000 in annual maintenance in 2007 and expects 90% of those to renew for 2008. Suppose that product sales for 2007 were $2,000,000 (which included a free year of maintenance) and 70% of those were expected to pay an annual maintenance of 15% of the purchase price in 2014. What will be the annual maintenance collected in 2015?

 

[stapel]

I don't really understand this question.. Please explain this and provide solution:

I'm sorry, but FreeMathHelp is not a "cheetz" site, so we don't "do" students' work for them, nor give out answers. For further information, kindly please re-read the "Read Before Posting" announcement.

Suppose a company did $2,000,000 in annual maintenance in 2007 and expects 90% of those to renew for 2008.

"Doing (some amount of money)" refers to earning monies in payment of services. In this case, the service appears to have been maintenance of something or other. But what is the "those" which are "expected to renew"? Information is missing, or else this is very poorly written. Should we assume that the intended meaning was something along the lines of the following?

---

Suppose a company earned $2,000,000 from annual maintenance contracts with various businesses in 2007. Suppose, for simplicity's sake, that every contract had the same value. The company expects 90% of these companies to renew their annual contracts for 2008.

---

Please confirm or correct.

Suppose that product sales for 2007 were $2,000,000 (which included a free year of maintenance) and 70% of those were expected to pay an annual maintenance of 15% of the purchase price in 2014. What will be the annual maintenance collected in 2015?

Should we assume that all products had the same value or, which works out the same way, that the "70% of those" means "70% of the sale-price value of"?

When you reply, please include a clear statement of your thoughts and efforts so far, so we can see where you're getting stuck. Thank you!