Discounts Each of the following situations involves the use of discounts: 1. How
ID: 2718868 • Letter: D
Question
Discounts
Each of the following situations involves the use of discounts:
1. How much discount may SEALS Inc. take in each of the following transactions? What was the annualized interest rate? Round your answers to the nearest whole number. When calculating the annualized rate use 360 days.
2. Calculate the discount rate OUTZ Co. received in each of these transactions.
a. OUTZ purchased office supplies costing $300 and paid within the discount period with a check for $291. Round your answer to the nearest whole number.
%
b. OUTZ purchased merchandise for $5,000. It paid within the discount period with a check for $4,925. Round your answer to one decimal place.
%
Discounts
Each of the following situations involves the use of discounts:
1. How much discount may SEALS Inc. take in each of the following transactions? What was the annualized interest rate? Round your answers to the nearest whole number. When calculating the annualized rate use 360 days.
Discount Annualized Interest Rate a. SEALS purchases inventory costing $900, 2/15, n/45. $ % b. SEALS purchases new office furniture costing $1,700, terms 1/10, n/30. $ %2. Calculate the discount rate OUTZ Co. received in each of these transactions.
a. OUTZ purchased office supplies costing $300 and paid within the discount period with a check for $291. Round your answer to the nearest whole number.
%
b. OUTZ purchased merchandise for $5,000. It paid within the discount period with a check for $4,925. Round your answer to one decimal place.
%
Explanation / Answer
1)a. Discount=2 % of $900= $18,Annualized Interest Rate=(360/(45-15))*2%=24%
b.Discount=1 % of $1700= $17,Annualized Interest Rate=(360/(30-10))*1%=18%
2 a)Discount rate=(300-291)/300=3%
b)Discount rate=(5,000-4,925)/5,000=1.5%
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.