If a business has credit card sales of $78,450 and negotiates a 3.6% discount rate, what amount does it owe the bank?
Understand the Problem
The question is asking to calculate the amount a business owes the bank after applying a discount rate to its credit card sales. We will need to find 3.6% of $78,450 to determine how much is owed.
Answer
$2826.20$
Answer for screen readers
The amount owed to the bank is $2826.20.
Steps to Solve
- Identify the percentage to calculate
We need to calculate 3.6% of $78,450. The percentage can be expressed as a decimal to make the calculation easier: $$ 3.6% = \frac{3.6}{100} = 0.036 $$
- Multiply the sales amount by the percentage
Now we will multiply the sales amount by the decimal percentage to find out how much is owed to the bank: $$ \text{Amount owed} = 78450 \times 0.036 $$
- Calculate the total amount owed
Perform the multiplication: $$ \text{Amount owed} = 78450 \times 0.036 = 2826.20 $$
Thus, the total amount the business owes the bank after applying the discount is $2826.20.
The amount owed to the bank is $2826.20.
More Information
The calculation of a percentage is a common business practice, especially when dealing with credit card sales and applicable fees. Knowing how to convert percentages into decimals and performing multiplications is essential for understanding financial transactions.
Tips
- Confusing percentage calculations: Ensure to convert the percentage to a decimal correctly before multiplying.
- Forgetting to multiply: Sometimes, it's easy to overlook the multiplication after identifying the percentage.
