Lucky you You went to couponcabincom and found a 10 off coup

Lucky you! You went to couponcabin.com and found a 10% off coupon to your significant other’s favorite store. Armed with that coupon, you went to the store only to find a storewide sale offering 10% off everything in the store. In addition, your credit card has a special offer that allows you to save 10% if you use your credit card for all purchases that day. Using your credit card, what will you pay before tax for the $150 gift you found? Use the single equivalent discount to calculate how much you save and then calculate your final price. (Do not round intermediate calculations. Round your final answers to the nearest cent.)

Home Depot wants to buy a new line of fertilizers. Manufacturer A offers a 19/14 chain discount. Manufacturer B offers a 24/12 chain discount. Both manufacturers have the same list price.

a. What is the percentage of discount for both manufacturers? (Do not round intermediate calculations. Round your final answers to the nearest hundredth percent.)

Bally Manufacturing sent Intel Corporation an invoice for machinery with a $13,400 list price. Bally dated the invoice July 29 with 5/10 EOM terms. Intel receives a 40% trade discount. Intel pays the invoice on August 11. On August 1, Intel Corporation returns $700 of the machinery due to defects. What does Intel pay Bally on August 11?

Payable amount            $

Solution

1. Single Equivalent Discount Rate = 1 - [(1 - 0.10)*(1 - 0.10)*(1 - 0.10)] = 1 - 0.729 = 0.271, or 27.10%

Savings = $150 x 0.271 = $40.65

Final Price = $150 - $40.65 = $109.35

2. Manufacturer A\'s percent of discount = (1 - 0.19)*(1 - 0.14) = 0.81*0.86 = 0.6966, or 69.66%

Manufacturer B\'s percent of discount = (1 - 0.24)*(1 - 0.12) = 0.76*0.88 = 0.6688, or 66.88%

3. Amount Due on August 1 = $13,400 - $700 = $12,700

As the payment was made on 11 August, which means the payment was made beyond the 5/10 EOM term, so only the 40% trade discount will apply.

Hence, Amount Paid = $12,700 - ($12,700 x 0.4) = $12,700 - $5,080 = $7,620