Question 1

The net proceeds to the vendor of a house after payment of a 5.5% real estate commission were $160,555.50. At what price did the house sell?

Accepted Answer

$169,900

Question 2

Mr. and Mrs. Ogrodnik want to list their house at a price that will net them a minimum of $320,000 after a real estate commission of 5.5% of the selling price. Rounded to the nearest $100, what is the lowest offer they could accept on their home?

Accepted Answer

$338,600

Question 3

After a trade discount of 27.5%, a jeweller can obtain ahalf carot Canadian Polar Bear diamonds for $2,138.75. What is the dollar amount of the trade discount?

Accepted Answer

$811.25

Question 4

Niagara Dairies gives convenience stores a trade discount of 24% on butter listed at $72.00 per case. What rate of discount will Silverwood Milk Products have to give on its list price of $74.50 per case to match Niagara's price to convenience stores?

Accepted Answer

The answer of Niagara Dairies gives convenience stores a trade...

Question 5

A 37.5% trade discount on a camera represents a discount of $223.14 from the suggested retail price. What is the net price to the buyer?

Accepted Answer

The answer of A 37.5% trade discount on a camera...

Question 6

Specialty Builders Supply has two sources for the same power saw. Source A sells the saw at $196.00 less 20%, and Source B offers it at $186.60 less 16  %. Which source is less expensive?

Accepted Answer

The answer of Specialty Builders Supply has two sources for...

Question 7

A 28% trade discount on a personal video recorder represents a discount of $136.92 from the suggested retail price. What is the net price to the buyer?

Accepted Answer

The answer of A 28% trade discount on a personal...

Question 8

Specialty Builders Supply has two sources for the same power saw. Source A sells the saw at $196.00 less 20%, and Source B offers it at $186.60 less 16  %. Which source is less expensive?

Accepted Answer

The answer of Specialty Builders Supply has two sources for...

Question 9

Best Buy Entertainment can obtain Panasonic Blu-ray players for $134 less a trade discount of 35%. A comparable Samsung model is available for $127 less a discount of 30%. Which DVD player has the lower net cost? How much lower?

Accepted Answer

The answer of Best Buy Entertainment can obtain Panasonic Blu-ray...

Question 10

Cynthia and Byron sell mutual funds for Syndicated Investors. Purchasers of mutual funds from agents of Syndicated Investors pay a front-end commission of 5.5%. The commission is paid on the total amount paid to Syndicated Investors, not on just the net amount actually invested in mutual funds.
a) Mr. and Mrs. Stevens placed $5,500 through Cynthia. What (net) amount was actually invested in mutual funds after the commission was paid?
b) If the net amount invested in mutual funds as a result of Byron's sale to Mrs. Stocker was $6,426, what (dollar) amount of commission was paid on the sale?

Accepted Answer

The answer of Cynthia and Byron sell mutual funds for...

Question 11

The net proceeds to the vendor of a house after payment of a 4.5% real estate commission were $275,995. At what price did the house sell?

Accepted Answer

The answer of The net proceeds to the vendor of...

Question 12

A trade discount of 22.5% from the suggested selling price for a line of personal computers translates to a $337.05 discount. What net price will a retailer pay?

Accepted Answer

The answer of A trade discount of 22.5% from the...

Question 13

A college bookstore buys back good-condition textbooks for 45% off the retail price of new books. What will a student receive for a book currently selling at $104.50 new?

Accepted Answer

The answer of A college bookstore buys back good-condition textbooks...

Question 14

In three successive years the price of the common shares of Bedrock Resources Ltd. fell 40%, 60%, and 70%, ending the third year at 50 cents.
a) What was the share price at the beginning of the three-year skid?
b) How much (in dollars and cents) did the share price drop in the second year?

Accepted Answer

The answer of In three successive years the price of...

Question 15

Net price to a car dealer of a model with a manufacturer's list price of $34,900 is $28,687.80. What trade discount rate is the dealer being given?

Accepted Answer

The answer of Net price to a car dealer of...

Question 16

A merchant pays a 3.5% fee to the BMO Bank of Montreal on all MasterCard sales.
a) What amount will she pay on sales of $17,564 for a month?
b) What were her gross sales for a month in which the bank charged total fees of $732.88?

Accepted Answer

The answer of A merchant pays a 3.5% fee to...

Question 17

A merchant pays a 2.9% fee to the Royal Bank on all Visa sales.
a) What amount will he pay on sales for a month of $28,476?
b) What were his gross sales for a month in which the bank charged fees totalling $981.71?

Accepted Answer

The answer of A merchant pays a 2.9% fee to...

Question 18

The distributor of Nikita power tools is offering a trade discount of 38% to hardware stores. What will be their cost to purchase a rotary saw listed at $135?

Accepted Answer

The answer of The distributor of Nikita power tools is...

Question 19

Green Thumb Nursery sells spreading junipers to the gardening departments of local grocery and building supply stores. The net price per tree is $27.06 after a trade discount of $22.14. What rate of trade discount is the nursery giving to retailers?

Accepted Answer

The answer of Green Thumb Nursery sells spreading junipers to...

Question 20

The net price of an item after a discount of 22% is $155.61. What is the (dollar) amount of the discount?

Accepted Answer

The answer of The net price of an item after...

Quiz 4: Mathematics of Merchandising