7th Mod. 2 Review

Front

What is the term for the price at which a retailer buys products from a distributor?

Back

Wholesale cost

Front

What is the term for the amount paid or earned for the use of money over specified periods of time?

Back

Interest

Front

How do you calculate sales tax on a purchase?

Back

Multiply the purchase price by the sales tax rate.

Front

What is the sales tax amount on a $42.79 item with a 6% sales tax rate?

Back

$2.57

Front

What is the definition of commission in a sales context?

Back

An amount earned by a salesperson on the sale of an item.

Front

What is the formula to calculate percent error?

Back

Percent Error = |(Estimated Value - Actual Value)| / Actual Value * 100%.

Front

If Jake estimated 12 defective batteries but found 10, what is the percent error of his estimate?

Back

20%.

Front

What is the difference between wholesale cost and retail price?

Back

Wholesale cost is the price paid by retailers to purchase goods, while retail price is the price charged to consumers.

Front

What is the significance of understanding interest rates in financial transactions?

Back

Interest rates determine the cost of borrowing money or the earnings from savings.

Front

What does it mean if a product is on sale?

Back

It means the product is being offered at a reduced price.