Chapter 8, Problem 1T

The box on page 569 summarizes the finance formulas you have worked with throughout the chapter. Where applicable, use the appropriate formula to solve an exercise in this test. Unless otherwise stated, round dollar amounts to the nearest cent and rates to the nearest tenth of a percent.

A CD player with an original price of $120 is on sale at 15% off.

a. What is the amount of the discount?

b. What is the sale price of the CD player?

To determine

To calculate: The value of the discount when price of the CD player is $120, and the discount on the sale is 15%..

Answer to Problem 1T

Solution:$18.

Explanation of Solution

Given: The price of the CD player is $120, and the discount on the sale is 15%.

Calculation:

Compute the value of the discount using the equation as shown below:

$\begin{array}{c}\text{Value of discount}=\text{Sales price}-\text{Discount percent}\\ =\$120-\left(\$120\times 0.15\right)\\ =\$18\end{array}$

To determine

To calculate: The sales price of the CD player when price of the CD player is $120, and the discount on the sale is 15%.

Answer to Problem 1T

Solution:$102.

Explanation of Solution

Given: The price of the CD player is $120, and the discount on the sale is 15%.

Calculation:

Compute the amount of sales price of the CD player using the equation as shown below:

$\begin{array}{c}\text{Discounted Sales price}=\text{Sales price}-\text{Amount of the Discount}\\ =\$120-\$18\\ =\$102\end{array}$