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?
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To calculate the amount each plaintiff will receive, you need to first subtract the legal fees from the total settlement amount and then divide the remaining amount by the number of plaintiffs.
Step 1: Subtract the legal fees from the total settlement. Total settlement = $2.8 million Legal fees = $600,000 Amount remaining after legal fees = Total settlement - Legal fees Amount remaining after legal fees = $2.8 million - $600,000 Amount remaining after legal fees = $2.2 million
Step 2: Divide the remaining amount by the number of plaintiffs to find the amount each plaintiff will receive. Number of plaintiffs = 81,000 Amount each plaintiff receives = Amount remaining after legal fees / Number of plaintiffs Amount each plaintiff receives = $2.2 million / 81,000
To make the division easier, we can convert $2.2 million into dollars: $2,200,000.
Amount each plaintiff receives = $2,200,000 / 81,000 Amount each plaintiff receives ≈ $27.16
So, each plaintiff will receive approximately $27.16 from the settlement after the legal fees are paid.