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Contemporary Mathematics for Business and Consumers 7th Edition by Robert Brechner ,George Bergeman
Edition 7ISBN: 978-1285448596Contemporary Mathematics for Business and Consumers 7th Edition by Robert Brechner ,George Bergeman
Edition 7ISBN: 978-1285448596 Exercise 57
Solve the following word problems. Round to the nearest cent when necessary.
You are the accountant for Suite Dreams, a retail furniture store. Recently, an order of sofas and chairs was received from a manufacturer with terms of 3/15, n/45. The order amounted to $230,000, and Suite Dreams can borrow money at 13% ordinary interest.
a. How much can be saved by borrowing the funds for 30 days to take advantage of the cash discount? (Remember, Suite Dreams must borrow only the net amount due after the cash discount is taken.)
b. What would you recommend?
You are the accountant for Suite Dreams, a retail furniture store. Recently, an order of sofas and chairs was received from a manufacturer with terms of 3/15, n/45. The order amounted to $230,000, and Suite Dreams can borrow money at 13% ordinary interest.
a. How much can be saved by borrowing the funds for 30 days to take advantage of the cash discount? (Remember, Suite Dreams must borrow only the net amount due after the cash discount is taken.)
b. What would you recommend?
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Contemporary Mathematics for Business and Consumers 7th Edition by Robert Brechner ,George Bergeman
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