A garage owner buys a job lot of 500 feet of #12-gauge wire. The price is $0.17 per foot. The next day, the price of this wire increases 15 1/4%. How much is saved by purchasing the wire at the lower price? Express the answer to the nearest cent.

Question

Quizplus · Accepted Answer

The cost of the wire at the lower price is:
500 feet x $0.17/foot = $85.00

After the price increase, the new cost of the wire is:
$0.17 + ($0.17 x 15.25%) = $0.1963/foot

The cost of 500 feet of wire at the new price is:
500 feet x $0.1963/foot = $98.16

The savings is the difference between the two prices:
$98.16 - $85.00 = $13.16

Rounded to the nearest cent, the answer is $13.77. The correct answer is (D).

A Garage Owner Buys a Job Lot of 500 Feet