Deck 7: Mathematics of Buying

Question 1

Solve for the amount of discount and amount due.

A)Amount of discount: $6.85; amount due: $335.58
B)Amount of discount: $30.82; amount due: $311.61
C)Amount of discount: $0; amount due: $342.43
D)Amount of discount: $6.65; amount due: $331.43

Answer 1

Amount of discount: $6.85; amount due: $335.58

Question 2

What does the abbreviation stand for?
cs.

A)case
B)cartons
C)centimeters
D)crates

Answer 2

case

Question 3

What does the abbreviation stand for?
bbl.

A)bubbles
B)barrel
C)double blank
D)baseball

Answer 3

barrel

Question 4

Provide an appropriate response.
Describe the difference between a trade discount and a cash discount.

Question 5

Provide an appropriate response.
Explain in your own words what a complement (with respect to 1 or 100%)is. Using complements, explain how to find the net cost equivalent of a series discount.

Question 6

Find the list price. Round to the nearest cent.
Net cost $239; trade discount

A)$155.84
B)$143.40
C)$366.53
D)$398.33

Question 7

Provide an appropriate response.
Explain the meaning of a cash discount which employs the ordinary dating method using , as an example.

Question 8

Compute the extension totals and the invoice total.

A)
B)
C)
D)

Question 9

Find the net cost. Round to the nearest cent.
$1,088 less

A)$544.00
B)$1,063.00
C)$816.00
D)$837.22

Question 10

Provide an appropriate response.
Give two reasons why cash discounts are offered by sellers.

Question 11

Compute the extension totals and the invoice total.

A)
B)
C)
D)

Question 12

Provide an appropriate response.
Describe in your own words why receipt-of-goods dating (ROG)is offered to customers. Use an example.

Question 13

Provide an appropriate response.
Which is the better series discount, or ? Explain.

Question 14

Solve the problem.
An invoice is received from Westminster Office Machines for $440.30 with terms of 7/14 and dated Feb 25 AS OF Mar 1. If a partial payment of $150 is made on Mar 24, find the balance due on the invoice.

A)$161.29
B)$290.30
C)$259.48
D)$279.01

Question 15

Provide an appropriate response.
Does a customer earn a cash discount with terms , net 30 on an invoice dated April 27 that is paid on May 13?

Question 16

Provide an appropriate response.
Explain what is meant by partial payment. Why would a company accept a partial payment? Why would a customer make a partial payment?

Question 17

Solve the problem. Round to the nearest cent.
An invoice is dated Aug 28 AS OF Sep 2 with terms of , n/30. Find the fina l discount date and the net payment date.

A)Final discount date: Sept 22
Net payment date: Oct 2
B)Final discount date: Sept 20
Net payment date: Sept 30
C)Final discount date: Sept 17
Net payment date: Sept 27
D)Final discount date: Sept 23
Net payment date: Oct 2

Question 18

Find the net cost. Round to the nearest cent.
$147.90 less

A)$44.37
B)$77.90
C)$110.93
D)$62.12

Question 19

Provide an appropriate response.
Explain the difference between a single trade discount and a series trade discounts. Give an example of each.

Question 20

Provide an appropriate response.
Identify and explain four reasons that might cause series trade discounts to change.

Question 21

Solve the problem.
An invoice received from Royal Exporters totaled $764.30, was dated Oct 4, and offered terms of 3/ 10 ROG. The shipment was received Nov 29. If the invoice was paid on Dec 11, find the amount due.

A)$764.30
B)$0
C)$741.37
D)$22.93

Question 22

Solve the problem.
An invoice is received from Westminster Office Machines for $312.20 with terms of and dated Feb 25 AS OF Mar 1. If a partial payment of $190 is made on Mar 12, find the balance due on the invoice.

A)$202.13
B)$110.07
C)$103.47
D)$122.20

Question 23

Find the net cost. Round to the nearest cent.
$1,425 less

A)$427.50
B)$356.25
C)$1,355.00
D)$615.60

Question 24

Solve the problem. Round to the nearest cent.
The list price of 2 dozen blank cassettes is $53. Find the dealer's cost per cassette if a series discount of is offered.

A)$42.80
B)$0.43
C)$1.77
D)$1.78

Question 25

Solve the problem. Round to the nearest cent.
A sewing supply store purchases thread at a list price of $55 per 100 spools. The supplier offers a trade discount of . Find the net cost of 300 spools of thread.

A)$99.00
B)$110.00
C)$33.00
D)$0.11

Question 26

Solve for the amount of discount and amount due.
Invoice amt: $1,474
Invoice date: May 16
Terms:
Shipping/Insurance: $33.05 Date paid: May 24

A)Amount of discount: $58.96; amount due: $1,381.99
B)Amount of discount: $60.28; amount due: $1,446.77
C)Amount of discount: $58.96; amount due: $1,448.09
D)Amount of discount: $0; amount due: $1,507.05

Question 27

Using complements (with respect to 1) of the single discounts, find the net cost equivalent for the following discount.

A)0.65
B)0.35
C)0.478125
D)0.521875

Question 28

Solve the problem. Round to the nearest cent.
Fairview Paint Supply offers contractors a trade discount of 10/15/10 on all paints and varnishes, with terms of . Find a contractor's price for paints with a total list price of $373 if the invoice is paid in 30 days.

A)$242.45
B)$256.81
C)$249.11
D)$235.18

Question 29

Solve for the amount of discount and amount due.
Invoice amt: $38.71
Invoice date: May 15
Terms: , net 30
Date paid: May 24

A)Amount of discount: $0.77; amount due: $37.94
B)Amount of discount: $7.74; amount due: $30.97
C)Amount of discount: $3.87; amount due: $34.84
D)Amount of discount: $0; amount due: $38.71

Question 30

Find the discount date and net payment date. (The net payment date is 20 days after the final discount date.)
Invoice date: Sep 10 Terms: EOM

A)Discount date: Sept 9; net payment date: Oct 31
B)Discount date: Sept 19; net payment date: Oct 9
C)Discount date: Oct 9; net payment date: Oct 29
D)Discount date: Sept 19; net payment date: Oct 30

Question 31

Solve for the amount of discount and amount due.
Invoice amt: $725.20
Invoice date: Mar 6
Terms:
Goods rec'd: Mar 8 Date paid: Apr 5

A)Amount of discount: $7.15; amount due: $714.20
B)Amount of discount: $0; amount due: $725.20
C)Amount of discount: $72.52; amount due: $652.68
D)Amount of discount: $7.25; amount due; $717.95

Question 32

Find the discount date and net payment date. (The net payment date is 20 days after the final discount date.)
Invoice date: Nov 14
Terms:
ROG Goods received: Dec 13

A)Discount date: Dec 15; net payment date: Jan 15
B)Discount date: Jan 14; net payment date: Jan 30
C)Discount date: Dec 28; net payment date: Jan 18
D)Discount date: Dec 28; net payment date: Jan 17

Question 33

Solve the problem.
Wallcoverings, Inc. just received a new line of posters that have a net cost of $7. If they were given discounts of 30% and 15%, find the list price.

A)$3.85
B)$11.76
C)$12.73
D)$4.17

Question 34

Find the list price. Round to the nearest cent.
Net cost $541; trade discount

A)$162.30
B)$227.22
C)$1,288.10
D)$1,803.33

Question 35

Solve the problem. Round to the nearest cent.
The list price of a car is $6,790. It is available at either a or a discount. Which discount gives the lower price? By how much?

A)
B)
C)
D)

Question 36

Solve for the amount of discount and amount due.
Invoice amt: $570
Invoice date: Oct 9
Terms:
Date paid: Oct 24

A)Amount of discount: $0; amount due: $570
B)Amount of discount: $17.10; amount due: $552.90
C)Amount of discount: $28.50; amount due: $541.50
D)Amount of discount: $57.00; amount due: $513.00

Question 37

Solve the problem.
An invoice received from Wharf Seafood Supply is dated Jan 1. The list price of the goods is $2,712, with allowed series discounts of . If the cash terms are ROG, and the goods were received Jan 15, find the amount to pay in full on Jan 28.

A)$1,739.81
B)$2,712
C)$1,491.60
D)$1,757.38

Question 38

Solve for the amount of discount and amount due.
Invoice amt: $4,091
Invoice date: July 7
Terms:
Date paid: July 27

A)Amount of discount: $409.10; amount due: $3,681.90
B)Amount of discount: $0; amount due: $4,091
C)Amount of discount: $40.91; amount due: $4,050.09
D)Amount of discount: $122.73; amount due: $3,968.27

Question 39

Solve for the amount of discount and amount due.
Invoice amt: $271.22
Invoice date: Nov 16
Terms:
ROG Goods rec'd: Dec 3 Date paid: Jan 5

A)Amount of discount: $7.84; amount due: $260.22
B)Amount of discount: $21.70; amount due: $249.52
C)Amount of discount: $8.14; amount due: $263.08
D)Amount of discount: $0; amount due: $271.22

Question 40

What does the abbreviation stand for?
FAS

A)freight as shipped
B)freight alongside ship
C)free alongside ship
D)free as shipped

Question 41

Find the list price. Round to the nearest cent.
Net cost $197; trade discount

A)$985.00
B)$39.40
C)$518.08
D)$74.91

Question 42

Find the net cost. Round to the nearest cent.
$137.70 less

A)$79.01
B)$85.37
C)$68.85
D)$87.70

Question 43

Using complements (with respect to 1) of the single discounts, find the net cost equivalent for the following discount.

A)0.6
B)0.56
C)0.5
D)0.44

Question 44

Find the discount date and net payment date. (The net payment date is 20 days after the final discount date.)
Invoice date: Aug 8
Terms:
Goods received: Oct 10

A)Discount date: Sept 15; net payment date: Oct 15
B)Discount date: Oct 25; net payment date: Nov 14
C)Discount date: Oct 25; net payment date: Nov 15
D)Discount date: Oct 15; net payment date: Nov 15

Question 45

Find the list price. Round to the nearest cent.
Net cost $636; trade discount

A)$275.58
B)$1,467.81
C)$1,272.00
D)$318.00

Question 46

Find the final discount date and the net payment date.
Invoice date: Jan 12
As of: Jan 22
Terms:

A)Final discount: Feb 6
Payment due: Feb 21
B)Final discount: Feb 21
Payment due: Feb 6
C)Final discount: Jan 27
Payment due: Feb 11
D)Final discount: Feb 5
Payment due: Feb 20

Question 47

Solve the problem.
An invoice received from Midtown Office Supply Distributors is dated Mar 4 with terms of 2/10 prox. Find the final date on which the cash discount may be taken and the net payment date.

A)Final discount date: Mar 14; net payment date: Apr 3
B)Final discount date: Apr 10; net payment date: May 1
C)Final discount date: Apr 10; net payment date: Apr 30
D)Final discount date: Mar 14; net payment date: Mar 31

Question 48

Find the net cost equivalent and the percent form of the single discount equivalent for the following series discount.

A)0.6; 40%
B)0.4; 60%
C)0.51; 49%
D)0.49; 51%

Question 49

Solve for the amount of discount and amount due.
Invoice amt: $392.59
Invoice date: Sept 10
Terms:
EOM Goods rec'd: Sept 13 Date paid: Oct 8

A)Amount of discount: $39.26; amount due: $353.33
B)Amount of discount: $7.65; amount due: $381.59
C)Amount of discount: $0; amount due: $392.59
D)Amount of discount: $7.85; amount due: $384.74

Question 50

Solve for the amount of discount and amount due.
Invoice amt: $1,515
Invoice date: Nov 27
Terms:
Goods returned: $83 Date paid: Dec 12

A)Amount of discount: $45.45; amount due: $1,552.55
B)Amount of discount: $42.96; amount due: $1,389.04
C)Amount of discount: $0; amount due: $1,432.00
D)Amount of discount: $45.45; amount due: $1,386.55

Question 51

Find the net cost. Round to the nearest cent.

A)$123.75
B)$130.00
C)$126.25
D)$139.00

Question 52

Find the net cost equivalent and the percent form of the single discount equivalent for the following series discount.

A)0.5; 55%
B)0.41658; 58.342%
C)0.58342; 41.658%
D)0.55; 50%

Question 53

Solve the problem.
On a new oak bookcase with a list price of $850, a series discount of is offered to wholesalers while a series discount of is offered to retailers. a)What is the wholesalers price? b)What is the retailer's price?

A)(a)$549.10; (b)$308.13
B)(a)$510.00; (b)$340.00
C)(a)$549.10; (b)$541.88
D)(a)$300.90; (b)$308.13

Question 54

What does the abbreviation stand for?
sk.

A)skate
B)skinned
C)sack
D)scale

Question 55

Find the net cost. Round to the nearest cent.
$179.40 less

A)$91.85
B)$119.40
C)$71.76
D)$107.64

Question 56

Solve the problem. Round to the nearest cent.
Tech Support offers trade discounts of and terms of , on its tool cases. Assuming a service department earns the cash discount, find the net cost of a tool case list-priced at $362.

A)$252.82
B)$245.80
C)$234.58
D)$260.64

Question 57

Find the discount date and net payment date. (The net payment date is 20 days after the final discount date.)
Invoice date: Nov 24
Terms: - 20x

A)Discount date: Dec 14; net payment date: Jan 3
B)Discount date: Dec 2; net payment date: Dec 22
C)Discount date: Dec 23; net payment date: Jan 13
D)Discount date: Dec 24; net payment date: Jan 13

Question 58

What does the abbreviation stand for?
cpm.

A)cost per mile
B)cash post mortem
C)cost per hundred
D)cost per thousand

Question 59

Find the net cost equivalent and the percent form of the single discount equivalent for the following series discount.

A)0.27325; 72.675%
B)0.72675; 27.325%
C)0.3; 75%
D)0.75; 30%

Question 60

Compute the extension totals and the invoice total.

A)
B)
C)
D)

Question 61

Find the list price. Round to the nearest cent.
Net cost $1,523; trade discount

A)$2,175.71
B)$2,115.28
C)$1,066.10
D)$1,096.56

Question 62

Find the final discount date and the net payment date.
Invoice date: Nov 20
As of: Nov 27
Terms:

A)Final discount: Dec 5
Payment due: Dec 20
B)Final discount: Dec 27
Payment due: Dec 12
C)Final discount: Dec 12
Payment due: Dec 27
D)Final discount: Dec 13
Payment due: Dec 27

Question 63

Find the net cost. Round to the nearest cent.
$872 less

A)$436.00
B)$395.54
C)$261.60
D)$802.00

Question 64

Solve for the amount of discount and amount due.
Invoice amt: $642.39
Invoice date: Sept 11
Terms:
Goods rec'd: Sept 14 Date paid: Nov 12

A)Amount of discount: $0; amount due: $642.39
B)Amount of discount: $89.93; amount due: $552.46
C)Amount of discount: $18.97; amount due: $631.39
D)Amount of discount: $19.27; amount due: $623.12

Question 65

Find the discount date and net payment date. (The net payment date is 20 days after the final discount date.)
Invoice date: Mar 14 Terms:

A)Discount date: May 3; net payment date: May 23
B)Discount date: May 13; net payment date: Jun 2
C)Discount date: May 14; net payment date: Jun 4
D)Discount date: Apr 3; net payment date: Apr 23

Question 66

Solve the problem.
A pool table with a list price of $395 is sold by a wholesaler at a net cost of $252.80. Find the single trade discount rate being offered. Round to the nearest tenth of a percent if necessary.

A)56.3%
B)55.3%
C)64%
D)36%

Question 67

Solve the problem. Round to the nearest cent.
Central Airlines offers a series discount of for frequent flyers. If a round-trip airline ticket is $741, what is the net cost after the series discount?

A)$388.28
B)$352.72
C)$481.65
D)$259.35

Question 68

Find the final discount date and the net payment date.
Invoice date: June 11
As of: June 15
Terms:

A)Final discount: July 6
Payment due: Aug 15
B)Final discount: Aug 14
Payment due: July 5
C)Final discount: July 1
Payment due: Aug 10
D)Final discount: July 5
Payment due: Aug 14

Question 69

Solve the problem.
Lotoff's Fashion Corner received a new line of paisley ties that had a net cost of $29 each. If they were given a series discount of , find the list price.

A)$8.70
B)$96.67
C)$12.25
D)$68.64

Question 70

Find the discount date and net payment date. (The net payment date is 20 days after the final discount date.)
Invoice date: Aug 20
Terms: EOM

A)Discount date: Sept 27; net payment date: Oct 17
B)Discount date: Sept 27; net payment date: Oct 27
C)Discount date: Sept 20; net payment date: Oct 10
D)Discount date: Sept 19; net payment date: Oct 9

Question 71

Solve the problem. Round to the nearest cent.
The list price of a keyboard is $670. If the series discount offered is 10/15/5, what is the net cost after trade discounts?

A)$183.08
B)$469.00
C)$486.92
D)$201.00

Question 72

Find the final discount date and the net payment date.
Invoice date: April 9
Terms:

A)Final discount: April 19
Payment due: May 1
B)Final discount: April 19
Payment due: May 9
C)Final discount: April 11
Payment due: April 19
D)Final discount: April 9
Payment due: April 19

Question 73

Solve the problem.
A sports store received a line of bicycles that had a net cost of $95 each. If the store was given a series discount of 40/35, find the list price.

A)$243.59
B)$23.75
C)$380.00
D)$37.05

Question 74

Solve for the amount of discount and amount due.
Invoice amt: $4,185
Invoice date: Mar 6
Terms:
Date paid: Mar 13

A)Amount of discount: $0; amount due: $4,185
B)Amount of discount: $167.40; amount due: $4,017.60
C)Amount of discount: $41.85; amount due: $4,143.15
D)Amount of discount: $418.50; amount due: $3,766.50

Question 75

Compute the extension totals and the invoice total.

A)
B)
C)
D)

Question 76

Find the list price. Round to the nearest cent.
Net cost $1,596; trade discount

A)$877.80
B)$2,625.00
C)$2,901.82
D)$970.37

Question 77

Solve the problem. Round to the nearest cent.
The store where Anna-Marie is a salesperson offers a series discount of 5/30 on any clothes bought at the store. What is the cost of a $65 sweater after discount?

A)$45.50
B)$42.25
C)$43.23
D)$21.78

Question 78

Solve the problem. Round to the nearest cent.
An invoice for computer parts totals $667, including $4.73 for shipping and insurance. The terms are . If this invoice is paid within 10 days, how much is owed?

A)$646.99
B)$647.13
C)$662.27
D)$596.04

Question 79

Find the net cost. Round to the nearest cent.
$1,076 less 25/20

A)$645.60
B)$1,345.00
C)$591.80
D)$1,031.00

Question 80

Solve for the amount of discount and amount due.
Invoice amt: $30.86
Invoice date: July 9
Terms:
Date paid: July 24

A)Amount of discount: $0; amount due: $30.86
B)Amount of discount: $0.62; amount due: $30.24
C)Amount of discount: $6.17; amount due: $24.69
D)Amount of discount: $3.09; amount due: $27.77