The U.S. Bank Business Leverage Visa Signature credit card is currently offering a $750 sign-up bonus (redeemable as a statement credit) if you (i) are approved and (ii) spend $7, 500 in net purchases within 120 days of account opening. The card also earns 2% cash back in the top two categories where the cardholder spends the most each month. Suppose that your instructor is approved for this credit card and then your instructor’s business uses the credit card exactly twice to purchase two different products that total $7, 500 combined (tax included). Then, with the $750 bonus combined with the $150 cash back ($7, 500 ∗ .02 = $150 cash back) both of which are redeemed as a statement credit, your instructor will only have a credit card balance of $6, 600. One might think of this as a $900 rebate, or $900 off of products that cost a combined $7, 500. With this thinking, how much of a percent discount did your instructor receive on these products combined by using this credit card offered by U.S. Bank (not discount per product, calculate overall, total discount among the two products combined)?

Answer rating: 100% (QA)

The total discount or rebate received by your instructor can be cal... View the full answer