Question

On May 31, Marty's Ice Cream Shop sells gift cards for 5,000. Customers redeem1,200 in June, 2,100 in July, and1,400 in August. Marty's experience is that any unredeemed gift cards as of August 31 are not likely to be redeemed. What is the total value of gift cards that were not redeemed as of August 31?

1) $700
2) $900
3) $1,200
4) $1,500

Answer 1

The total value of unredeemed gift cards as of August 31 is $300.

Step-by-step explanation:

To find the total value of gift cards that were not redeemed as of August 31, we need to subtract the total amount redeemed from the total amount sold. Given that Marty's Ice Cream Shop sold gift cards for $5,000, and customers redeemed $1,200 in June, $2,100 in July, and $1,400 in August, we can calculate the total value of unredeemed gift cards.

Total value of gift cards sold = $5,000

Total value of gift cards redeemed = $1,200 + $2,100 + $1,400 = $4,700

Total value of unredeemed gift cards = $5,000 - $4,700 = $300

Therefore, the correct answer is option 1) $300.