Cynthia and Byron sell mutual funds for Syndicated Investors. Purchasers of mutual funds from agents of Syndicated Investors pay a front-end commission of 5.5%. The commission is paid on the total amount paid to Syndicated Investors, not on just the net amount actually invested in mutual funds.
a. Mr. and Mrs. Stevens placed $5500 through Cynthia. What amount was actually invested in mutual funds after the commission was paid?
b. If the net amount invested in mutual funds as a result of Byron’s sale to Mrs. Stocker was $6426, what amount of commission was paid on the sale?