A previous representative told me that I would receive a 17% discount on my $123.76 service plan. How much is the discount?” Representative: “You will receive a discount of _
The Correct Answer and Explanation is:
Representative: “You will receive a discount of $21.04.”
Explanation:
To calculate the discount, we need to apply the percentage (17%) to the total amount of the service plan ($123.76). Here’s the step-by-step process:
Step 1: Understand the percentage
A percentage is a way of expressing a number as a fraction of 100. So 17% means 17 out of every 100 parts.
Step 2: Convert the percentage to a decimal
To use the percentage in a calculation, convert it to a decimal by dividing by 100:17%=17100=0.1717\% = \frac{17}{100} = 0.1717%=10017=0.17
Step 3: Multiply the decimal by the total amount
Now multiply the decimal value of the percentage (0.17) by the total plan cost ($123.76):0.17×123.76=21.03920.17 \times 123.76 = 21.03920.17×123.76=21.0392
This result means that the discount is approximately $21.04. We round to the nearest cent because currency is typically represented to two decimal places.
Final Answer:
The 17% discount on $123.76 equals $21.04.
Why this matters:
Providing the correct discount amount ensures transparency and trust in customer service. Miscommunication about pricing can lead to dissatisfaction. By clearly explaining the math and showing the steps, we help the customer feel confident in the accuracy of the information. This kind of clarity also empowers customers to verify such calculations themselves in the future, reinforcing a sense of fairness and professionalism.
