Microsoft 365 FundamentalsDescribe Microsoft 365 pricing and supportHard
A Microsoft 365 administrator needs to purchase 50 Microsoft 365 Business Standard licenses for their organization. The current per-user monthly cost is $12.50. If the organization opts for an annual commitment paid monthly, which provides a 16% discount compared to the monthly commitment, what will be their total monthly bill for these licenses?
- A$735.00
- B$625.00
- C$525.00
- D$483.00
Show answer & explanationAnswer & explanation
Correct answer: C. $525.00
First, calculate the discounted monthly price per user: $12.50 * (1 - 0.16) = $12.50 * 0.84 = $10.50. Then, multiply this by the number of users: $10.50 * 50 users = $525.00. This is the total monthly bill for the licenses.
Why the other options are wrong
- A. This calculation is incorrect, possibly applying the discount incorrectly or to the wrong base.
- B. This is the cost without any discount: $12.50 * 50 = $625.00.
- D. This calculation is incorrect, possibly applying the discount incorrectly or to the wrong base.
Microsoft 365 License Cost Calculation
Determining the total cost of Microsoft 365 licenses by applying per-user pricing, commitment discounts, and total user count.
- Annual commitments typically offer discounts (e.g., 16-20%) over monthly commitments.
- Total cost = (Per-user monthly cost * (1 - discount percentage)) * Number of users.
- Costs can vary by region, currency, and specific plan.
Memory trick: Discount first, then multiply by users for the monthly sum.