An item that had a list price of $1446 was subject to trade What is the single discounts of 13%, 11% and 9%. equivalent discount rate (SEDR) that is equal to the discount series? Do not include the percent symbol and round your answer to 2 decimal places.
An item that had a list price of $1446 was subject to trade What is the single discounts of 13%, 11% and 9%. equivalent discount rate (SEDR) that is equal to the discount series? Do not include the percent symbol and round your answer to 2 decimal places.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Transcribed Image Text:An item that had a list price of $1446 was subject to trade
What is the single
discounts of 13%, 11% and 9%.
equivalent discount rate (SEDR) that is equal to the
discount series? Do not include the percent symbol and
round your answer to 2 decimal places.
Expert Solution
Step 1
Single equivalent discount rate is one rate which is given on the item puchased. It will result in the same selling price as withsuccessive discount rates.
Successive discount rates are:
d1 = 13%
d2 = 11%
d3 = 9%
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