A Vendor Sells Tool Chests at a Flea Market for $72

question 220

Multiple Choice

A vendor sells tool chests at a flea market for $72. If she makes a profit of 20% on each unit sold, what does she pay the manufacturer for each tool chest? ( Hint: The retail price = the wholesale price + the markup.)

• A) $64
• B) $56
• C) $60
• D) $ 57
• E) $63

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Definitions:

Deferred Annuity

A financial product offered by insurance companies that postpones the disbursement of income, periodic payments, or a single large payment until chosen by the investor.

Ordinary Annuity

An investment product that pays out fixed payments to an individual at regular intervals for a specified period of time, typically used for retirement savings.

Deferred Annuity

A type of annuity contract that delays payments of income, installments, or a lump sum until the investor elects to receive them.

Ordinary Annuity

Consistent payouts distributed at the conclusion of each cycle over an established length.