Baker's Financial Planners purchased seven new computers for $970 each. It received a 20% discount because it purchased more than six and an additional 7% discount because it took immediate delivery. Terms of payment were 3/10, n/30. Baker's pays the bill within the cash discount period. How much should the check be?

Question

Jacoby Fisher

Business

22 June, 11:03

Baker's Financial Planners purchased seven new computers for $970 each. It received a 20% discount because it purchased more than six and an additional 7% discount because it took immediate delivery. Terms of payment were 3/10, n/30. Baker's pays the bill within the cash discount period. How much should the check be?

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Answers (1)

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Luciana · Answer 1

Check: 5,269.04

Explanation:

We will multiply each computer by the list price. Then, apply the order discount of 20%. Finally the invoice discount of 3% for payment within 10 days

7 computer x 970 dollars each = 6,790

20% Discount for quantity:

6,790 x 20% (1,358)

Invoice nominal: 5,432

discount within the first 10 days:

5,432 x 3% (162.96)

final amount: 5,269.04