Microsoft 365 FundamentalsDescribe Microsoft 365 pricing and supportMedium
A Microsoft 365 administrator needs to purchase 75 Microsoft 365 Business Standard licenses for their organization. The current monthly price per user is $12.50. If they opt for an annual commitment paid monthly, which provides a 10% discount, what will be the total monthly cost of these licenses?
- A$750.00
- B$843.75
- C$937.50
- D$1,031.25
Show answer & explanationAnswer & explanation
Correct answer: B. $843.75
First, calculate the cost without the discount: 75 users * $12.50/user = $937.50. Then, apply the 10% discount: $937.50 * 0.10 = $93.75. Subtract the discount from the total: $937.50 - $93.75 = $843.75.
Why the other options are wrong
- A. This option represents an incorrect calculation, possibly dividing by 10 instead of applying a 10% discount.
- C. This is the cost without applying the 10% discount.
- D. This option incorrectly adds 10% instead of subtracting it.
Microsoft 365 Annual Commitment (Monthly Payment)
A billing option where a customer commits to using Microsoft 365 services for one year but pays for the subscription on a monthly basis, often receiving a discount compared to monthly commitments.
- Commitment period: 12 months
- Payment frequency: Monthly
- Typical benefit: Price discount compared to pure monthly plan
- Cancellation during term may incur fees
Memory trick: Discounted 'Annual' plans make your wallet feel a little less 'Monthly' pain.