Find the trade discount on a computer that lists for $600 if a discount rate of 5% is offered. The trade discount is $31.58
Find the trade discount on a computer that lists for $600 if a discount rate of 5% is offered. The trade discount is $31.58
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![**Calculating Trade Discount on a Computer**
To determine the trade discount on a computer that lists for $600 when a discount rate of 5% is offered, follow these steps:
1. **Identify the List Price**: The original price of the computer is **$600**.
2. **Determine the Discount Rate**: The given discount rate is **5%**.
Now, calculate the trade discount:
3. **Calculate the Trade Discount**:
\[
\text{Trade Discount} = \text{List Price} \times \left( \frac{\text{Discount Rate}}{100} \right)
\]
Substitute the given values:
\[
\text{Trade Discount} = 600 \times \left( \frac{5}{100} \right)
\]
4. **Perform the Multiplication**:
\[
\text{Trade Discount} = 600 \times 0.05 = 30
\]
Thus, **The trade discount is \$30**.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff3aaa20b-aa03-431c-a209-6c3af75044ad%2Fd12a59e4-2732-4859-8de0-e64c130373fc%2Frjy3dd4_processed.jpeg&w=3840&q=75)
Transcribed Image Text:**Calculating Trade Discount on a Computer**
To determine the trade discount on a computer that lists for $600 when a discount rate of 5% is offered, follow these steps:
1. **Identify the List Price**: The original price of the computer is **$600**.
2. **Determine the Discount Rate**: The given discount rate is **5%**.
Now, calculate the trade discount:
3. **Calculate the Trade Discount**:
\[
\text{Trade Discount} = \text{List Price} \times \left( \frac{\text{Discount Rate}}{100} \right)
\]
Substitute the given values:
\[
\text{Trade Discount} = 600 \times \left( \frac{5}{100} \right)
\]
4. **Perform the Multiplication**:
\[
\text{Trade Discount} = 600 \times 0.05 = 30
\]
Thus, **The trade discount is \$30**.
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