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A business professional needs to easily and accurately calculate trade and cash

ID: 2649105 • Letter: A

Question

A business professional needs to easily and accurately calculate trade and cash discounts, interest, and interest rates. To test your understanding, please solve the following examples. Clearly discuss how you solved each of the problems.

The list price for a radio is 22% higher than its net price. If the net price is $29.00, what is the list price? What is the amount of the trade discount?

A desk has been discounted with the trade series 5/6/3. The original price of the desk was $987.95. Find the net price and the discount of the desk.

A consumer loan is made at 10.0% over a 3.5-year period. If $2,125 in interest is paid, what is the principal? What is the total amount paid by the consumer? Report the results to the nearest penny.

TileSquare Inc. buys floor tiles at $0.89 each from its manufacturer. If a contractor purchases 120 tiles and pays $142.80 for the tiles, how much was the markup per tile, and what was the percentage markup of the overall price? Round the percentage to the nearest tenths.

Sam

Explanation / Answer

Q1) The list price for a radio is 22% higher than its net price. If the net price is $29.00, what is the list price? What is the amount of the trade discount?

List Price = Net Price + 22%*Net Price

List Price = 29 + 22%*29

List Price = $ 35.38

Amount of the trade discount = List Price- Net Price

Amount of the trade discount = 35.38 - 29

Amount of the trade discount = 6.38

A desk has been discounted with the trade series 5/6/3. The original price of the desk was $987.95. Find the net price and the discount of the desk.

Net price = original price * (1-5%) *(1-6%) *(1-3%)

Net price = 987.95*(1-5%)*(1-6%) *(1-3%)

Net price = $ 855.77

A consumer loan is made at 10.0% over a 3.5-year period. If $2,125 in interest is paid, what is the principal? What is the total amount paid by the consumer? Report the results to the nearest penny.

Principal = 2125/(10% *3.5)

Principal = $ 6071.43

Total amount paid by the consumer = 6071.43 + 2125

Total amount paid by the consumer = $ 8196.43

TileSquare Inc. buys floor tiles at $0.89 each from its manufacturer. If a contractor purchases 120 tiles and pays $142.80 for the tiles, how much was the markup per tile, and what was the percentage markup of the overall price? Round the percentage to the nearest tenths.

Markup per tile = 142.80/120 - 0.89

Markup per tile = $ 0.30

Percentage markup = 0.30/0.89

Percentage markup = 33.71%

Sam