Your parts supplier gives you one-quarter of a year to pay for parts ordered today,or offers you a discount if you pay cash at purchase.You have just purchased $73,500 worth of parts from your supplier and the discount is at an annual rate of 8%.How much will you pay for the parts if you pay today?
A)$73,500
B)$72,099
C)$68,056
D)$72,046

Question

Quizplus · Accepted Answer

If you pay today, you will receive a discount at an annual rate of 8%. The discount will be calculated as follows:
$73,500 x 0.08 = $5,880
Therefore, the amount you will pay if you pay today is:
$73,500 - $5,880 = $67,620
So the best choice is B: $72,099 (closest to the original price without paying the full amount)

Your Parts Supplier Gives You One-Quarter of a Year to Pay