Janet Foster bought a computer and printer at Computerland. The printer had a $880 list price with a $100 trade discount and 2/10, n/30 terms. The computer had a $4,000 list price with a 25% trade discount but no cash discount. On the computer, Computerland offered Janet the choice of (1) paying $155 per month for 17 months with the 18th payment paying the remainder of the balance or (2) paying 7% interest for 18 months in equal payments.

a. Assume Janet could borrow the money for the printer at 7% to take advantage of the cash discount. How much would Janet save? (Use 360 days a year. Round your answer to the nearest cent.)

Answers

Answer 1
Answers

Part A (Printer): $12.63

Part B (Computer): $180.83

Step-By-Step

A:

"take advantage of the cash discount" Since Janet is taking the cash discount we need to use the terms.

2/10 => Means if paid in 10 days apply a 2% discount

($880 - $100) = $780  (This is because of the trade discount stated also)

$780 * 0.98 = $764.40  

(Note: 0.98 is the term "2/10" it is the 2% discount, represented as (1-0.02) )

$764.40 * 0.07 * (20/360) = $2.9726666 (Note: Here 20/360, 20 represents the rest of the days left in the term agreement)

No Discounts: ($780 - 764.40) = $15.60

Discounts: $2.9726666

How much would Janet save?

$15.60 - $2.9726666 = $12.62733 = $12.63

===============================================

Question has a part B:

"On the computer, what is the difference in the final payment between choices 1 and 2?"

Note: Computer Price w/ Trade Discount => $4,000 - ($4,000*0.25) = $3000

(1) "$155 per month for 17 months" => $155 × 17 = $2,635

Last payment $3,000 – $2,635 = $365

(2)-------------- Note: 18 Months = 1.5 Years

$3,000 × 0.07× 1.5 = $315

$3,000 + $315 = ($3,315) / 18 Months = $184.1666

Difference in the final payment?

$365 - $184.1666 = $180.8334 = $180.83

Answer 2

A. Janet would save $12.63

B. Computer: $180.83

How much would janet save ?

Since Janet is taking the cash discount we need to use the terms.

"take advantage of the cash discount"

2/10 => Means if paid in 10 days apply a 2% discount

($880 - $100) = $780  (This is because of the trade discount stated also)

$780 * 0.98 = $764.40  

[0.98 is the term "2/10" it is the 2% discount, represented as (1-0.02)]

$764.40 * 0.07 * (20/360) = $2.9726666 (Note: Here 20/360, 20 represents the rest of the days left in the term agreement)

No Discounts: ($780 - 764.40) = $15.60

Discounts: $2.9726666

Janet would save = $15.60 - $2.9726666 = $12.62733 = $12.63

On the computer, what is the difference in the final payment between choices 1 and 2?

Computer Price w/ Trade Discount => $4,000 - ($4,000*0.25) = $3000

(1) "$155 per month for 17 months" => $155 × 17 = $2,635

    Last payment $3,000 – $2,635 = $365

(2) 18 Months = 1.5 Years

    $3,000 × 0.07× 1.5 = $315

    $3,000 + $315 = ($3,315) / 18 Months = $184.1666

Difference in the final payment= $365 - $184.1666 = $180.8334 = $180.83

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Related Questions

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Answers

Answer:

24

Step-by-step explanation:

[tex]\frac{3}{4} *32\\=\frac{3}{4}*\frac{32}{1} \\=\frac{96}{4} =24[/tex]

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Answers

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Step-by-step explanation:

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Step-by-step explanation:

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Answers

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P(A) = ?
P(B) = 2/5
P(A and B) = 6/25

Answers

The missing probability will be P(A) = 3/25. The correct option is C.

What is probability?

Probability is a measure of the likelihood of an event occurring. It is a number between 0 and 1, where 0 indicates that an event is impossible, and 1 indicates that an event is certain. Probability is used in mathematics, statistics, and many other fields to quantify uncertain or random events.

To find the missing probability P(A), we can use the formula for the probability of the intersection of two events:

P(A and B) = P(A) * P(B|A)

Where P(B|A) is the conditional probability of B given A.

Rearranging this formula, we get:

P(A) = P(A and B) / P(B|A)

To find P(B|A), we can use the formula for conditional probability:

P(B|A) = P(A and B) / P(A)

Substituting this into the first formula, we get:

P(A) = P(A and B) / (P(A and B) / P(A))

Simplifying, we get:

P(A) = P(A and B) / P(B)

Substituting the given values, we get:

P(A) = (6/25) / (2/5)

Simplifying, we get:

P(A) = (6/25) x (5/2)

P(A) = 3/25

Therefore, the missing probability is P(A) = 3/25.

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Answers

Answer:

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Answers

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Answers

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Answers

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x=15

Step-by-step explanation:

Hello there!

The shown angles are vertical angles

if you didn't know vertical angles are congruent

That being said we can create equation

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now we solve for x

step 1 subtract 40 from each side

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now we have 75 = 5x

step 2 divide each side by 5

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we're left with x = 15

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Answers

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Step-by-step explanation:

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Ddddxxxxddxdddddddddc

A lottery offers one $900 prize, one $600 Prize, three $400 prizes, and four $100 prizes. One thousand tickets are sold at $5 each. Find the expectation if a person buys four tickets. Assume that the player's ticket is replaced after each draw and that the same ticket can win more than one prize. Round to two decimal places for currency problems.

Answers

Answer:

Expected value for 4 tickets = $ -7.6

Step-by-step explanation:

Given - A lottery offers one $900 prize, one $600 Prize, three $400 prizes, and four $100 prizes. One thousand tickets are sold at $5 each.

To find - Find the expectation if a person buys four tickets. Assume that the player's ticket is replaced after each draw and that the same ticket can win more than one prize. Round to two decimal places for currency problems.

Proof -

Given that,

A lottery offers

one $ 900 prize

one $ 600 prize

three $ 400 prizes

Four $ 100 prizes

And

One thousand tickets are sold at $ 5 each

Now,

If the person bought 1000 tickets then the prize he gets is

= 900 + 600 + 3×400 + 4×100

= 900 + 600 + 1200 + 400

= $3100

And

The cost of 1000 tickets = 5×1000 = $ 5000

Now,

Price 1 ticket = [tex]\frac{3100}{1000}[/tex] = $ 3.1

⇒Expectation of 1 ticket = $ 3.1 - 5 = $ -1.9      (Here $5 is price of 1 ticket)

⇒Expected value for 4 tickets = $ 4× -1.9 = $ -7.6

⇒Expected value for 4 tickets = $ -7.6

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