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Questions 1-2 refer to the following advertisement.



Mr. Robert Jones

ABC Company

123 Main Street

Chicago, Illinois 60606



Dear Mr. Jones:



In the past 12 months, you have purchased a considerable amount of merchandise from us, which pleases us greatly.

Since you have never taken advantage of the 2% discount we offer for early payment, we thought that you might be unaware of just how substantial your savings could be. The savings on last year\'s purchases alone would have amounted to $1000.

By paying us within 10 days of delivery, you can actually save 24% of the face amount of your average monthly bill over the period of a year. There are, in fact, firms who prefer to borrow funds to take advantage of this discount. Of course, you know what is best for your own business, but we want to be sure that you are aware of this savings factor.

We would like to take this opportunity to thank you for the orders you have given to us over this past year and the promptness with which you have always paid. It is a pleasure doing business with your firm.



Sincerely



Don Stevens

Don Stevens



1. According to the letter, for what is the discount offered?

   (A) Bulk purchase

   (B) Speedy payment

   (C) Online orders

   (D) Group purchase



2. Which of the following is NOT true?

   (A) Mr. Johns has ordered a substantial amount of merchandise from the company

         over the last year.

   (B) Mr. Jones would have saved $1000 on last year\'s purchases.

   (C) Mr. Jones has already used the discount benefit.

   (D) Some companies borrow money to benefit from this discount.









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