Concept explainers
The Advantage Cash Card At the student union on a certain campus, you can save on food purchases by using the Advantage Cash Card. You deposit money into an Advantage Cash account and are issued a credit card the you use to purchase food. The card has several advantages:
♣ If you open your Advantage Cash account for
♣ When you use your Advantage Cash Card, you receive
♣ When you buy food with cash, you must pay a sales tax of
a. An item retails for
b. An item retails for
c. What retail value of food will you be able to purchase if you open an Advantage Cash account for
d. What retail value of food would you be able to purchase with
e. Calculate the percentage increase from your answer for part d to your answer for part c. Explain in practical terms the meaning of this percentage.
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