a. Calculate the equivalent discount rate that represents these three discounts. % Round to two decimal places b. Calculate the net price of the shipment. $ Round to the nearest cent
a. Calculate the equivalent discount rate that represents these three discounts. % Round to two decimal places b. Calculate the net price of the shipment. $ Round to the nearest cent
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Step 1
In case of 3 discounts, suppose x%, y%, z%,
First of all we calculate a discount rate using first 2 discount rates i.e. x% and y%. Lets name it as g%.
So, g% = ( x + y - xy ÷ 100)%
Then we calculate equivalent diacount rate using g% and z%:
Equivalent Discount Rate:
= ( g + z - gz ÷ 100) %
Then we apply this rate to find discount on the transaction.
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