test #1 review questions #1 - 25\ncaution: this review is not to be used as a substitute for studying the…

test #1 review questions #1 - 25\ncaution: this review is not to be used as a substitute for studying the indicated material.\n1. an item lists for $254.70. if a trade discount of 30% is offered, find the net price.\n2. an item lists for $79.99. if a trade - discount series of 25%, 15%, 10% is offered, find the net price.\n3. a 37.5% trade discount on a camera represents a discount of $111.57 from the list price. what is the net price to the buyer?\n4. the net price of a product after a discount of 15% is $845.75. what is the dollar amount of the discount?\n5. the net price of an item listed for $369 is $287.82. what rate of trade discount is being given?\n6. niagara dairies gives convenience stores a discount of 24% on butter listed at $72 per case. what rate of discount will silverwood milk products have to give on its list price of $74.50 per case to match niagaras price to convenience stores?\n7. what single rate of trade discount is equivalent to the series:\na) 25%, 10%, 7.5%?\nb) 20%, 10%, 8\\frac{1}{3}%?\n8. an invoice for $2678.50 dated april 15 has terms: 1.5/14, e.o.m.\na) what is the last day for taking the cash discount?\nb) what payment on april 30 will reduce the outstanding balance by $800?\nc) if an additional payment of $1000 is made on may 5, what will be the new balance?\n9. an invoice for $13,600 dated july 12 has terms: 3/10 r.o.g. the goods were shipped on july 15 and received july 28.\na) what is the last day of the discount period?\nb) what payment on july 30 will reduce the outstanding balance by $5000?\nc) if, instead of the payment in part b), $5000 is paid on july 30, what will be the outstanding balance after the payment?\nd) instead of the payment in part b) or c), what payment on august 7 will reduce the outstanding balance to $5000?\ntest #1 review questions 1 - 25\ncentennial college\ndepartment of mathematicss

test #1 review questions #1 - 25\ncaution: this review is not to be used as a substitute for studying the indicated material.\n1. an item lists for $254.70. if a trade discount of 30% is offered, find the net price.\n2. an item lists for $79.99. if a trade - discount series of 25%, 15%, 10% is offered, find the net price.\n3. a 37.5% trade discount on a camera represents a discount of $111.57 from the list price. what is the net price to the buyer?\n4. the net price of a product after a discount of 15% is $845.75. what is the dollar amount of the discount?\n5. the net price of an item listed for $369 is $287.82. what rate of trade discount is being given?\n6. niagara dairies gives convenience stores a discount of 24% on butter listed at $72 per case. what rate of discount will silverwood milk products have to give on its list price of $74.50 per case to match niagaras price to convenience stores?\n7. what single rate of trade discount is equivalent to the series:\na) 25%, 10%, 7.5%?\nb) 20%, 10%, 8\\frac{1}{3}%?\n8. an invoice for $2678.50 dated april 15 has terms: 1.5/14, e.o.m.\na) what is the last day for taking the cash discount?\nb) what payment on april 30 will reduce the outstanding balance by $800?\nc) if an additional payment of $1000 is made on may 5, what will be the new balance?\n9. an invoice for $13,600 dated july 12 has terms: 3/10 r.o.g. the goods were shipped on july 15 and received july 28.\na) what is the last day of the discount period?\nb) what payment on july 30 will reduce the outstanding balance by $5000?\nc) if, instead of the payment in part b), $5000 is paid on july 30, what will be the outstanding balance after the payment?\nd) instead of the payment in part b) or c), what payment on august 7 will reduce the outstanding balance to $5000?\ntest #1 review questions 1 - 25\ncentennial college\ndepartment of mathematicss

Answer

Question 1

Explanation:

Step1: Calculate the net - price factor

The net - price factor when a trade discount of $d = 30%=0.3$ is offered is $1 - d=1 - 0.3 = 0.7$.

Step2: Calculate the net price

The list price $L = 254.70$. The net price $N$ is given by $N=(1 - d)L$. So, $N = 0.7\times254.70=$178.29$.

Answer:

$$178.29$

Question 2

Explanation:

Step1: Calculate the net - price factor for the series of discounts

The net - price factor for a series of discounts $d_1 = 25%=0.25$, $d_2 = 15%=0.15$, $d_3 = 10%=0.1$ is $(1 - d_1)(1 - d_2)(1 - d_3)$. $(1 - 0.25)(1 - 0.15)(1 - 0.1)=0.75\times0.85\times0.9 = 0.57375$.

Step2: Calculate the net price

The list price $L = 79.99$. The net price $N=(1 - d_1)(1 - d_2)(1 - d_3)L$. So, $N=0.57375\times79.99\approx$45.90$.

Answer:

$$45.90$

Question 3

Explanation:

Step1: Find the list price

Let the list price be $L$. We know that $d = 37.5% = 0.375$ and the discount amount $D = 111.57$. Since $D=dL$, then $L=\frac{D}{d}=\frac{111.57}{0.375}=$297.52$.

Step2: Calculate the net price

The net price $N = L - D$. So, $N=297.52-111.57=$185.95$.

Answer:

$$185.95$

Question 4

Explanation:

Step1: Find the list price

Let the list price be $L$. If the discount rate $d = 15%=0.15$, then the net - price factor is $1 - d = 0.85$. We know that $N = 845.75$ and $N=(1 - d)L$. So, $L=\frac{N}{1 - d}=\frac{845.75}{0.85}=$995$.

Step2: Calculate the discount amount

The discount amount $D=dL$. So, $D = 0.15\times995=$149.25$.

Answer:

$$149.25$

Question 5

Explanation:

Step1: Calculate the discount amount

The list price $L = 369$ and the net price $N = 287.82$. The discount amount $D=L - N=369 - 287.82 = 81.18$.

Step2: Calculate the trade - discount rate

The trade - discount rate $d=\frac{D}{L}=\frac{81.18}{369}=0.22 = 22%$.

Answer:

$22%$

Question 6

Explanation:

Step1: Calculate the net price for Niagara Dairies

For Niagara Dairies, with a list price $L_1 = 72$ and a discount rate $d_1 = 24%=0.24$, the net price $N_1=(1 - d_1)L_1=(1 - 0.24)\times72=0.76\times72 = 54.72$.

Step2: Calculate the required discount rate for Silverwood

Let the discount rate for Silverwood be $d_2$. The list price $L_2 = 74.50$ and $N_1 = N_2$. We know that $N_2=(1 - d_2)L_2$. So, $1 - d_2=\frac{N_1}{L_2}=\frac{54.72}{74.50}=0.7345$. Then $d_2=1 - 0.7345 = 0.2655\approx26.6%$.

Answer:

$26.6%$

Question 7a

Explanation:

Step1: Calculate the net - price factor for the series

The net - price factor for discounts $d_1 = 25%=0.25$, $d_2 = 10%=0.1$, $d_3 = 7.5%=0.075$ is $(1 - d_1)(1 - d_2)(1 - d_3)=(1 - 0.25)(1 - 0.1)(1 - 0.075)=0.75\times0.9\times0.925 = 0.625875$.

Step2: Calculate the single equivalent discount rate

The single equivalent discount rate $d = 1-(1 - d_1)(1 - d_2)(1 - d_3)=1 - 0.625875 = 0.374125\approx37.4%$.

Answer:

$37.4%$

Question 7b

Explanation:

Step1: Calculate the net - price factor for the series

The net - price factor for discounts $d_1 = 20%=0.2$, $d_2 = 10%=0.1$, $d_3=\frac{25}{3}%=\frac{25}{3}\div100=\frac{1}{12}\approx0.0833$ is $(1 - d_1)(1 - d_2)(1 - d_3)=(1 - 0.2)(1 - 0.1)(1-\frac{1}{12})=0.8\times0.9\times\frac{11}{12}=0.66$.

Step2: Calculate the single equivalent discount rate

The single equivalent discount rate $d = 1-(1 - d_1)(1 - d_2)(1 - d_3)=1 - 0.66 = 0.34 = 34%$.

Answer:

$34%$

Question 8a

Explanation:

The terms $1.5/14$, E.O.M. mean a $1.5%$ cash discount if paid within 14 days of the end of the month. The invoice is dated April 15. The end - of - the - month is April 30. The last day for taking the cash discount is May 14.

Answer:

May 14

Question 8b

Explanation:

Let the payment be $P$. We know that the amount by which the outstanding balance is reduced is related to the payment and the discount. Since the discount period has passed (April 30 is after the discount period), the payment that will reduce the outstanding balance by $800$ is $P = 800$.

Answer:

$$800$

Question 8c

Explanation:

The invoice amount is $I = 2678.50$. After a payment of $1000$ on May 5 (after the discount period), the new balance $B=2678.50 - 1000=$1678.50$.

Answer:

$$1678.50$

Question 9a

Explanation:

The terms $3/10$ R.O.G. mean a $3%$ discount if paid within 10 days of the receipt of goods. The goods were received on July 28. The last day of the discount period is August 7.

Answer:

August 7

Question 9b

Explanation:

Since the discount period has passed (July 30 is after the 10 - day R.O.G. period), the payment that will reduce the outstanding balance by $5000$ is $P = 5000$.

Answer:

$$5000$

Question 9c

Explanation:

The invoice amount is $I = 13600$. After a payment of $5000$ on July 30 (after the discount period), the outstanding balance $B=13600 - 5000=$8600$.

Answer:

$$8600$

Question 9d

Explanation:

The invoice amount is $I = 13600$. Let the payment be $P$. We want the outstanding balance to be $5000$. So, $P=13600 - 5000=$8600$.

Answer:

$$8600$