For clarity, let me make a few small corrections:
Mrs. Hill purchased four new coffee urns at $1.69 each. For buying in quantity she is given a 3 1/2 percent discount on the bill. What is the amount she paid?
$1.69/urn is the unit price (the price for ONE urn). Multiply that by 4 urns. Note that urn and urn will cancel out, and you'll be left with an expression with a $ sign.
Next, multiply that result by 0.035 (which is the decimal equivalent of 3 1/2%).