SOLUTION: Contracted jones bough $8,750 worth of building materials on August 1. The supplier offered a 2.5% cash discount on any amount paid within 7 days. Compute the amount the builder sh

Question 1038666: Contracted jones bough $8,750 worth of building materials on August 1. The supplier offered a 2.5% cash discount on any amount paid within 7 days. Compute the amount the builder should remit to credit their account for $7,500 (this problem involves the partial payment of an invoice within the discount period.)
Answer by Theo(13342) (Show Source): You can put this solution on YOUR website!
the invoice was for 8750.
the partial payment was 7500.
the discount was 2.5%
the discount rate as a percent is divided by 100 to get the discount rate as a decimal.
the discount rate as a decimal becomes .025.
you would subtract the discount rate as a decimal from 1 to get 1 - discount rate = .975.
you would divide the payment by .975 to get 7500/.975 = 7692.307692.
this is the credit that is applied to the invoice.
you get 8750 - 7692.307692 = 1057.692308.
you would round this to 1057.69.
this is the balance due after the credit has been applied.

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