Question

The shops inventory will cost 25,000. The supplier requires a down payment of 15% of the total cost at the time of purchase. What is the balance you will owe after making the down payment?

Answer 1

Answer: you will owe $21250 after the down payment.

Explanation:

The shops inventory will cost 25,000. The supplier requires a down payment of 15% of the total cost at the time of purchase. This means that the amount paid as down payment for the purchase would be

15/100 × 25000 = 0.15 × 25000 = $3750

Therefore, the balance that you will owe after making the down payment would be

25000 - 3750 = $21250