Question

If a business negotiates a 3.6% discount rate and has credit card sales this month of $78,450, what

amount does it owe the bank?

Answer 1

The business negotiates a 3.6% discount rate on credit card sales of $78,450, resulting in a discount of $2,824.20. Therefore, the business owes the bank $75,625.80 after applying the negotiated discount.

Step-by-step explanation:

If a business negotiates a 3.6% discount rate and has credit card sales this month of $78,450, the amount it would owe to the bank can be calculated by subtracting the discount amount from the total sales. The discount on the sales can be calculated as follows:

Discount = Total Sales × Discount Rate

Discount = $78,450 × 0.036

Discount = $2,824.20

Now, the amount owed to the bank will be the total sales minus the discount:

Amount owed = Total Sales – Discount

Amount owed = $78,450 – $2,824.20

Amount owed = $75,625.80

Therefore, the business owes the bank $75,625.80 after the discount.