Question

Select the correct answer.

Walter sees a sign on a store window announcing a 25 percent discount on a minimum purchase of $500. What type of discount is the store offering?
membership discount
contingent discount
straight discount
bulk-purchase discount

Answer 1

I believe this would be a contingent discount. Contingent discounts are granted to a buyer when they satisfy certain requirements. In this case, the requirement is to have a minimum purchase of $500. Thus, that would make it a contingent discount.
The other's are incorrect.
A membership discount requires you to have a membership.
A straight discount is basically present value of future cash flow without compounding. (Business Dictionary Definition)
A bulk purchase discount is a financial incentive for regular shoppers or businesses that buy things in bulk.

Answer 2

Option B - Contingent discount.

Explanation:

Given : Walter sees a sign on a store window announcing a 25 percent discount on a minimum purchase of $500.

To find : What type of discount is the store offering?

Solution :

According to the question,

The type of discount is contingent discount.

Contingent discounts are granted to a buyer with more certain requirements for cost which has to be satisfied.

As there is a requirement to have a minimum purchase of $500.

Therefore, Store offering contingent discount.

So, Option B is correct.