What is the initial fee for a service contract that costs $1,000 and requires a 10% deposit?

What is the initial fee for a service contract that costs $1,000 and requires a 10% deposit?

• A. $50
• B. $100
• C. $200
• D. $300

Answer: (B)

To determine the initial fee for a service contract that costs $1,000 with a required deposit of 10%, you need to calculate 10% of $1,000. 10% of $1,000 is calculated as follows: \( 1,000 \times 0.10 = 100 \) This means that the initial fee to be paid as a deposit is $100. Thus, the correct answer reflects the proper calculation of the deposit based on the total contract cost.

To determine the initial fee for a service contract that costs $1,000 with a required deposit of 10%, you need to calculate 10% of $1,000.

10% of $1,000 is calculated as follows:

( 1,000 \times 0.10 = 100 )

This means that the initial fee to be paid as a deposit is $100. Thus, the correct answer reflects the proper calculation of the deposit based on the total contract cost.