# Practical Business Math Procedures Chapter 7 Challenge Problems and Summary Practice Set

Satisfactory Essays

Challenge Problems
7-49
I. Given
a) Honda Insight Original Price \$17,995.00
b) Honda Insight Dealer Price \$16,495.00
c) Terms: 1/15 n/30
II. Unknown
a. How much is the rebate?
b. What percent is the rebate?
c. What is the amount of the discount if the dealer pays within 15 days?
d. What is the dealer’s final price?
e. What is the dealer’s total savings?
III. Equation
a. Rebate = Original Price – Dealer Price
b. % Rebate = (Rebate / Original Price) x 100%
IV. Solving and Solution
a. Rebate = Original Price – Dealer Price
= \$17995.00 – \$16495.00
= \$1,500.00 rebate

b. % Rebate = (Rebate / Original Price) x 100%
= (\$1500.00 / \$174995.00) x 100%
= 8.34% rebate

c. 15day discount = Dealer Price x Discount

Net Price = list price – trade discount amount
= \$300.00 - \$15.00
= \$285.00

6. Lee Company bought computer equipment - \$7000.00, terms 4/10, n/30, FOB shipping point
 Discounted price = List Price x (1-Discount)
= \$7000 x (100%-4%)
= \$7000 x 96%
= \$6720.00 Discounted price
 Final Payment = Discounted Price + FOB Shipping Point
= \$6720.00 + \$400.00
= \$7120.00 total payment

7. Which manufacturer should Julie buy