(Answered) Problem regarding the annual maintenance

Finance

Problem: Suppose a company did $2,000,000 in annual maintenance in 2013 and expects 90% of those to renew for 2014. Suppose that product sales for 2013 were $2,000,000 (which included free maintenance in 2013) and 70% of those were expected to pay an annual maintenance of 15% of the purchase price in 2014.

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Question: What will be the annual maintenance collected in 2014? Be detailed in your response and provide examples also.

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