Supplemental Instruction Handouts
Business Math Review
Chapters 4, 6 and 7
Use the following information for the next two questions:
A discount of 32.5% on an item amounted to a $47.58 discount.
1. What was the list price?
2. What was the net price?
3. If a bookstore receives trade discounts of 15%, 7.5% and 5% on a textbook with a
net price of $60.49, what was the list price?
4. If a kitchen suite was listed for $450 with a trade discount of 25%, what is the net
price?
5. A 20 inch flat screen television has a net price of $275.75 to the store. What was its
list price if a the store received a discount of 20% and 10%?
6. A dishwasher that was listed for $695 has a net price to the store of $451.75. What
is the rate of discount the store received?
7. The list price of a snow shovel is $9.50 and is subject to a discount of 15%. What is
the amount of the discount?
8. Calculate the amount to settle an invoice dated August 10 in the amount of $640
with terms of 5/10, 2/30 and n/60, if the invoice was paid on September 9.
9. An invoice for $1,975 was dated November 13 with terms of 4/10 and n/30. What
payment on November 23 must be made to reduce the debt to $1,000?
10. An invoice for $4,250 was dated October 12 with terms of 4/10, 2/30 and n/60. If a
partial payment of $2,000 is made on October 22 to reduce the debt, what was the
amount credited to the account?
11. Determine the selling price of an article costing $150 if the markup is 25% of cost?
Learning Assistance Centre
www.rrc.mb.ca/lac
These questions are compiled by Mike Reimer for the Learning Assistance Centre.
12. What is the cost of an item selling for $275 if the rate of markup based on selling
price is 12.5%?
13. A retail store buys an item listed at $45 with a trade discount of 22%. The store than
marks the item up 34% of cost. What is the selling price of the item?
14. A retailer purchases a new net book for school. The net book costs $299 and was
subject to a markup of $75.50. What is the rate of markup based on cost?
15. An item purchased by retailer has a list price of $145 and is subject to trade
discounts of 15% and 10%. The item was sold for $175 by the retailer. What is the
rate of markup based on selling price?
16. A sump pump costs a plumber $129.99 less a trade discount of 27.3%. He calculates
operating expenses to be 20% of cost and 25% of cost to cover operating profit.
What is the sale price of the item?
17. A light fixture costs $245.99 less trade discounts of 20% and 12%. The merchant
calculates expenses to be 27% of selling price and 18% of the selling price for
operating profit. What is the breakeven price of the light fixture?
18. Find the reduced selling price of an item if the regular selling price is $449.50 and is
then marked down at a rate of 40% of regular selling price.
19. If a high definition television is reduced from $999.95 to $949.95 for a sale, what is
the rate of markdown?
Use the following information for the next two questions:
A treadmill that cost a retailer $420 less 33 1/3%, 20% and 5% was sold to include
operating expenses at 25% of selling price and an operating profit of 35% of selling price.
During the annual scratch and save sale, the treadmill was marked down a further 45%
of regular selling price.
20. What is the reduced sale price?
21. What is the profit or loss on the reduced sales price of the treadmill?
22. Calculate interest earned for an investment of $300 from October 15, 2010 to April
27, 2011 with an annual interest rate of 9.25%.
Learning Assistance Centre
www.rrc.mb.ca/lac
These questions are compiled by Mike Reimer for the Learning Assistance Centre.
23. Calculate the interest earned for an investment of $2,500 from November 25, 2011
to May 27, 2012 with an annual interest of 8.75%.
24. Determine the principal to be deposited to earn $55.75 in 185 days at 11%.
25. What is the annual interest rate earned from a $1,500 investment that earned
interest of $33.29 in 85 days?
26. Determine the number of days it will take for $2,500 to earn $143.84 at 7.5%.
27. Calculate the principal that will earn $61.85 interest at 8.75% per annum from
October 30, 2010 to June 2, 2011.
28. Find the principal that will earn $148.32 at 13.5% in 9 months.
29. A loan of $880 can be repaid in 15 months by paying the principal sum borrowed
plus $104.50 interest. What was the rate of interest charged?
30. At what rate of interest will $1,387 earn $101.84 in 200 days?
31. In how many months will $1,290 earn $156.68 interest at 13.25%?
32. If you purchased some items for your business on July 12 at a cost of $450 with
credit terms of 3/5, 2/10 and n/30 EOM, how much would you have to pay to settle
the debt on August 10?
33. If $1,650 was invested on April 23, 2011 and went on to earn interest of $107.27
based on an interest rate of 10.5%, when did the investment come to an end?
(Calculate your answer in days)
34. If $2,750 was invested at an interest rate of 12% and earned $99.45 in interest. If the
investment ended on December 1, 2011, when did the investment start? (Calculate
your answer in days)
35. What amount of money will accumulate to $1,000 if invested at 12.75% for 10
months?
36. Find the maturity value of a deposit of $1,650 invested at 10.5% from May 23, 2012
to December 5, 2012.
Learning Assistance Centre
www.rrc.mb.ca/lac
These questions are compiled by Mike Reimer for the Learning Assistance Centre.
37. If the maturity value of a $2,400 investment for 15 months is $2,715, what rate of
interest did this investment earn?
Use the following information for the next two questions:
If an investment of $1,254.07 grew to $1,330 at a rate of 13%.
38. How many days did it take?
39. If the start date of the investment was May 1, 2012, what is the end date of the
investment?
Use the following information for the next 2 questions:
If you make an investment of $15,000 in a 90 – day term deposit paying interest at 3.3%.
40. What will be the maturity value?
41. If upon maturity you decide to “roll it over” into a 120 – day term deposit paying an
interest of 2.9%, what will be the maturity value?
42. Calculate the price of a $50,000, 91 – day Province of Manitoba Treasury bill on its
issue date if the current market rate of return is 2.5849%.
43. If Joelle purchased a $25,000, 182 – day T – bill discounted to yield 4.25% and sold it
35 days later to yield 4.5% how much did Joelle earn?
44. For 90 to 365 – day GICs, the Royal Bank offered a rate of 2.9% on investments of
$25,000 to $59,999 and a rate of 3.2% on investments of $60,000 to $99,999. How
much more will you receive in interest on a single investment of $75,000 for 250
days compared to making two investments of $37,500 for 250 days?
Learning Assistance Centre
www.rrc.mb.ca/lac
These questions are compiled by Mike Reimer for the Learning Assistance Centre.