Question

A class-action suit against a utility company resulted in a settlement of $2.8 million for 81,000 customers. If the legal fees, which must be paid from the settlement, are $600,000, what amount will each plaintiff receive?

Answer 1

Answer:

The correct answer is $27.16.

Explanation:

According to the scenario, the given data are as follows:

Settlement amount = $2,800,000

Total customers = 81,000

Legal fees = $600,000

So, we can calculate the amount received by each plaintiff by using following formula:

Amount received by each = (Settlement amount  - Legal fees) ÷ Number of customers

= ( $2,800,000  - $600,000 ) ÷ 81,000

= $2,200,000 ÷ 81,000

= $27.16