Flora's Flowers Buys Some Pots and Vases with a List

question 67

Multiple Choice

Flora's Flowers buys some pots and vases with a list price of $26,700. If the supplier offers a trade discount that yields a net price of $12,955, what is the trade discount rate to the nearest tenth of a percent?

• A) 45.1%
• B) 49.5%
• C) 59.6%
• D) 51.5%

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Definitions:

Acceptance

is the agreement to the terms of an offer, contract, or proposal, thus forming a binding contract between the parties.

Insurable Interest

A requirement that a person stands to suffer a financial loss or certain types of losses from the damage, loss, or destruction of the subject matter of the insurance policy.

Purchase Money Security Interest

A legal claim that allows a lender to repossess or foreclose on property if the borrower fails to pay back the loan used to purchase the property.

Grain Elevator

A facility equipped to receive, store, and often ship grain.