Question

Luna Company accepted credit cards in payment for $7,950 of services performed during July 2018. The credit card company charged Luna a 1.55 percent service fee; it paid Luna as soon as it received the invoices. Required Based on this information alone, what is the amount of net income earned during the month of July? (Do not round intermediate values. Round final answer to 2 decimal places.)

Answer 1

Explanation:

Accepted credit= $ 7950

Charges for services =1.55% of the total

7950 - 1.55% of 7950

7950 - (1.55/100)*7950

7950 - 123.225

7826.775

7826,78 two decimal places

This is the net income earned during the month of July

Answer 2

$7826.78

Explanation:

Total income = 7950

With a service fee charge of 1.55%, the service fee charge =
`1.55\%*7950 = (1.55)/(100)*7950 = 123.225`

Net income = 7950 - 123.225 = 7826.775 = $7826.78

An alternative solution:

Service charge = 1.55%

Net income = (100 - 1.55)% × 7950

= 98.45% × 7950 =
`(98.45)/(100)*7950 = 7826.775=7826.78`