A business professional needs to easily and accurately calculate trade and cash discounts, interest, and interest rates. To test your understanding, please solve the following examples. Clearly discuss how you solved each of the problems.
The list price for a radio is 22% higher than its net price. If the net price is $29.00, what is the list price? What is the amount of the trade discount?
A desk has been discounted with the trade series 5/6/3. The original price of the desk was $987.95. Find the net price and the discount of the desk.
A consumer loan is made at 10.0% over a 3.5-year period. If $2,125 in interest is paid, what is the principal? What is the total amount paid by the consumer? Report the results to the nearest penny.
TileSquare Inc. buys floor tiles at $0.89 each from its manufacturer. If a contractor purchases 120 tiles and pays $142.80 for the tiles, how much was the mark-up per tile, and what was the percentage mark-up of the overall price? Round the percentage to the nearest tenths.
Sam’s Photography business took out a loan for $7,000 for 3 years (compounded annually). If the interest rate was 9%, find the future value and the interest paid on the loan. Compare this compound interest with if the loan was made on simple interest.