5
QuizMultiple Choice

Principles of Financial Planning — Unit test

Question 5 • Personal Finance - EL3403

A refrigerator is priced at $1,250. There are two options offered to reduce the price: either a 25% discount off the price or a rebate of $300. Which is the better choice, and what is the extra amount saved?

Answer
T
The 25% discount is better; it saves $12.50 more.
T
The rebate is better; it saves $12.50 more.
T
The 25% discount is better; it saves $75 more.
T
The rebate is better; it saves $75 more.

Explanation

A 25% discount on $1,250 is 0.25 × $1,250 = $312.50. The rebate saves $300, so the discount saves $312.50 − $300 = $12.50 more. The 25% discount is the better choice.

AI-written and checked against the verified answer.

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