<h3>
Answers</h3>
Part A (<em><u>Printer</u></em>): $12.63
Part B (<em><u>Computer</u></em>): $180.83
<h3>
Step-By-Step</h3>
A:
"take advantage of the cash discount" Since Janet is taking the cash discount we need to use the terms.
2/10 => Means if paid in 10 days apply a 2% discount
($880 - $100) = $780 (This is because of the trade discount stated also)
$780 * 0.98 = $764.40
(Note: 0.98 is the term "2/10" it is the 2% discount, represented as (1-0.02) )
$764.40 * 0.07 * (20/360) = $2.9726666 (Note: Here 20/360, 20 represents the rest of the days left in the term agreement)
No Discounts: ($780 - 764.40) = $15.60
Discounts: $2.9726666
How much would Janet save?
$15.60 - $2.9726666 = $12.62733 = $12.63
===============================================
Question has a part B:
"On the computer, what is the difference in the final payment between choices 1 and 2?"
Note: Computer Price w/ Trade Discount => $4,000 - ($4,000*0.25) = $3000
(1) "$155 per month for 17 months" => $155 × 17 = $2,635
Last payment $3,000 – $2,635 = $365
(2)-------------- Note: 18 Months = 1.5 Years
$3,000 × 0.07× 1.5 = $315
$3,000 + $315 = ($3,315) / 18 Months = $184.1666
Difference in the final payment?
$365 - $184.1666 = $180.8334 = $180.83