Chapter 8.III, Problem 23RE

Solve the following word problems. Round dollars to the nearest cent and percents to the nearest tenth of a percent.

You have decided to purchase a set of four Good-Ride tires for your vehicle at the Tire Emporium.

a. If the original price of these tires is $160.00 each, what are the amount of the markdown with rebate per tire and the markdown percent if you get the rebate and pay cash?

b. What are the amount of the markdown per tire and the markdown percent if you decide to put the purchase on your Good-Ride credit card and get the double rebate?

c. When you purchased the set of four tires, you were offered an “Extra $5\%$

" discount on the entire purchase if you also included wheel balancing at $5.75 per tire and a front-end alignment for $65.00. The sales tax in your state is $7.5\%$. What was the total amount of your purchase if you used your Good-Ride credit card? Use the unrounded markdown percent you found in part b in your calculations.

d. What are the advantages and disadvantages of using the credit card?