Question

The original price of a 2018 Honda Shadow to the dealer is $17,045, but the dealer will pay only $16,335 after rebate. If the dealer pays Honda within 15 days, there is a 1% cash discount.a. How much is the rebate?b. What percent is the rebate? (Round your answer to the nearest hundredth percent.)c. What is the amount of the cash discount if the dealer pays within 15 days? (Round your answer to the nearest cent.)d. What is the dealer’s final price? (Round your answer to the nearest cent.)e. What is the dealer’s total savings? (Round your answer to the nearest cent.)

Answer 1

a.

The rebate is:

$17045-16335=710$

Therefore, the rebate is $710

b.

To determine the percent of the rebate we use a rule of three:

$\begin{gathered} 17045\rightarrow100 \\ 710\rightarrow x \end{gathered}$

then:

$x=\frac{710\cdot100}{17045}=4.17$

Therefore the rebate is 4.17%

c.

The amount of the cash discount is:

$16335\cdot\frac{1}{100}=163.35$

Therefore, the amount of the cash discount is $163.35

d.

The dealers final price is:

$16335-163.35=16171.65$

Therefore, the dealer's final price is $16171.65

e.

The dealer's total savings is:

$17045-16171.65=873.35$

Hence the dealer's total savings is $873.35