1. Revenue sharing happens when sponsors/dealers receive some compensation depending on which securities clients are invested in. The SEC has determined that Firm ABC is a dealer who had a conflict of interest in recommending securities to clients, in particular certain securities where Firm ABC received revenue sharing. For each purchase in a security, 4% of the principal amount was paid in Dealer/sponsor commissions, and the Dealer received 80% of these commissions.
   1. Write a formula for calculating how much remediation Firm ABC would owe the client for each purchase.