Exercise

1. dollar amount of trade discount and the net price using discount method.
2. complement rate and the net price using complement method.
3. Find the amount of each discount in the given series of trade discounts. Then find the net price. List Price = RM
5895; Trade Discount = 15%, 10%, 8%

1st =
2nd =
3rd =
Net price =
4. Find the complement rate of each discount in the given series of trade discounts.
Then find the net price, using complement method.
List Price = RM 2502; Trade Discount = 20%, 10%, 5%
5. Find the discount date, the due date, the amount of the cash discount, and the amount of the remittance based on
the following information given.

Terms: 1.5/20, n/60; Invoice date: July 26; Invoice amount: RM1645.55
Discount date:
Due date :
Discount amount :
Remittance:

6. The following problems involve partial payments made within the discount period. Find the amount credited and
unpaid balance.

Terms: 5/15, n/20

Invoice date: Jan. 27
Invoice amount: RM279.55
Remittance: RM 200

Amount credited:
Unpaid balance:

7. Calculate the selling price if the dollar markup is $520.52 and the cost is $714?
8. Fill in the blank
Cost Markup percent Dollar Markup Selling Price
based on cost

$750 179% (a) $1342.5 (b) $2092.5

$200 20% (c) $40 (d) $ 240

9. Fill in the blank

Cost Dollar Markup Selling Price
(a) $785 $985.25
$123456 (b) $159753
$531 $102 (c)
(d) $213 $777

10. Calculate the markdown percent for a telephone which has its price reduced from RM4250 to RM2299.

1951/4250*100 = 45.91%

11. Fill in the blank

Total Assessed Valuation Money that must be raised Tax Rate as a percent
RM200,000,000 RM1,200,000 (a)
RM150,000,000 RM34,000,000 (b)

12. What is the annual percentage rate (APR) of a loan for RM10,000 for 3 years at
13.5% interest with monthly payments?

APR =

13. The following table shows cost, estimated life, years used, and scrap value for each machine. Find the annual
depreciation, total depreciation, and book value after the indicated number of years of use.
Origina Estimated Years Scrap Annual Total Book
l Depreciatio
Life Used Value Depreciatio Value
Cost n n to Date
(years)
12000 10 7 230 (a) (b) (c)
6400 8 6 400 (d) (e) (f)
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14. Cute Delivery Service bought two new trucks. The following table shows the cost, scrap value, estimated life (in
miles), and mileage for the first year. Using the straight-line method based on mileage driven, compute the first
years depreciation and the book value at the end of the first year for each truck.
Original Scrap Estimated Mileage Depreciation Book
for
Cost Value Life for First Value after
First Year
(miles) Year 1 Year
52700 2000 150000 35100 (a)11934 (b)40766
72500 5000 160000 80000 (c) 33750 (d)38750

15. Star Ltd. owns 2 big machines, the details of which are shown in the following table. Star Ltd. uses the double-
declining-balance method of calculating depreciation. Compute the depreciation for the specific years indicated.
Original Estimated Scrap Year Depreciation Year Depreciation
Cost Life (years) Value
27500 8 500 1 (a)6875 2 (b)5156.25
82560 5 2000 2 (b)19814.4 3 (d)11888.64

16. Premier bought two cars. The following table shows the cost, estimated life, and resale estimate for each car.
Use the sum-of-the-years-digits method to find each vans depreciation for the first and second years of use.
Round the answers to the nearest dollar.
Original Cost Estimated Resale Depreciation Depreciation for
for
Life Estimate Second Year
First Year
63000 5 years 4000 (a)19666.67 (b) 15733.33
72000 8 years 7000 (c)14444.44 (d) 12638.89
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17. An advertisement claiming that you can purchase a laptop worth RM7000 for just RM1000 down payment and
RM200 each month for next 3 years as a great deal. What is it actual annual percentage rate (APR)?
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