Question

A freezer was sold during a clearance sale for $387.50. If the freezer was sold at a discount of 16 %, what was the list price? The list price is $ (Round to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) A company received an invoice for $2190.89 dated August 18 with terms 6/15, 1/30, n/60.

(a) If the invoice is paid on September 1, how much is to be paid?
(b) If the invoice is paid on September 13, how much is to be paid?
(c) If the invoice is paid on October 15, how much is to be paid?
(a) The amount to be paid on September 1 is SIA (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as ne
(b) The amount to be paid on September 13 is $ . (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as ne
(c) The amount to be paid on October 15 is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as nee

Answer 1

The original list price of the freezer is $461.31. If the invoice is paid on September 1, the amount is $2059.24; if paid on September 13, it is $2168.98; and if paid on October 15, the full amount of $2190.89 is to be paid.

Step-by-step explanation:

To determine the list price of the freezer, we need to know that the sale price represents 84% (100% - 16% discount) of the list price. By dividing the sale price by 0.84, we can find the original list price. The payments for the invoice depend on the payment date and the discounts applicable if paid within certain time frames.

Calculation for the list price of the freezer:

List price = Sale price / (1 - discount rate)
List price = $387.50 / (1 - 0.16)
List price = $387.50 / 0.84
List price = $461.309523
Rounded list price = $461.31

Invoice Payments:

Payment on September 1 (within 15 days, hence 6% discount):
Payment = Invoice amount * (1 - discount rate)
Payment = $2190.89 * (1 - 0.06)
Payment = $2059.2366
Rounded payment = $2059.24

Payment on September 13 (within 30 days, hence 1% discount):
Payment = Invoice amount * (1 - discount rate)
Payment = $2190.89 * (1 - 0.01)
Payment = $2168.9811
Rounded payment = $2168.98

Payment on October 15 (no discount, beyond terms):
Full Invoice amount = $2190.89