. Imagine you work as a sales associate in the electronics section of a department store and a customer has just walked in looking for a new television. After showing him a few different models and some accessories, you give the customer the price list below to review. You inform the customer that you offer an installment plan: balances paid in full within three months are given a 5% discount and balances paid after six months will accrue an interest of 3% each month from then on. Discount or interest is applied before taxes. There is also a state sales tax of 6% applied to all orders. In addition, there is a nontaxable shipping and handling fee for each item purchased: $5.00 fee on items priced less than $100.00 and $20.00 fee on items priced more than $100.00.