Explanation Given Information: The list price is $ 1 , 200 and trade discount rate are 20 % , 15 % and 7 % . Formula used: Look for the complement of the trade discount rates by subtracting each rate from 100 % and converting them to decimal dorm. Compute the net price factor by multiplying all the decimals together. The formula for the single equivalent discount is computed by subtracting the net price factor from 1 . Single equivalent discount = 1 − Net price factor The trade discount is computed by multiplying list price with single equivalent discount Trade discount = List price × Single equivalent discount The formula for the net price is computed by multiplying the list price by net price factor. Net price = List price × Net price factor Calculation: Consider list price is $ 1 , 200 and trade discount rate are 20 % , 15 % and 7 % . Compute complements of the trade discount rates in series by subtracting them from 100%. 100 % − 20 % = 80 % = 0.80 100 % − 15 % = 85 % = 0.85 100 % − 7 % = 93 % = 0

Contemporary Mathematics for Business & Consumers - With LMS CengageNOW

8th Edition

ISBN: 9781337125468

Author: Brechner

Publisher: Cengage

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Chapter 7.III, Problem 13RE

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To calculate: The net price factor, single equivalent discount, trade discount and net price if list price is $1,200 and trade discount rate are 20%, 15% and 7%.

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Chapter 7.III, Problem 12RE

Chapter 7.III, Problem 14RE

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Contemporary Mathematics for Business & Consumers - With LMS CengageNOW

Ch. 7.I - From the following FotoFair invoice, identify the...Ch. 7.I - Prob. 2TIE Ch. 7.I - What word is represented by each of the following...Ch. 7.I - Prob. 2RE Ch. 7.I - What word is represented by each of the following...Ch. 7.I - Prob. 4RE Ch. 7.I - Prob. 5RE Ch. 7.I - Prob. 6RE Ch. 7.I - Prob. 7RE Ch. 7.I - Prob. 8RE

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The net price factor, single equivalent discount, trade discount and net price if list price is $ 1 , 200 and trade discount rate are 20 % , 15 % and 7 % .

Solution Summary: The author calculates the net price factor, single equivalent discount, trade discount and net value by multiplying all the decimals together.

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To calculate: The net price factor, single equivalent discount, trade discount and net price if list price is $1,200 and trade discount rate are 20%, 15% and 7%.

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Chapter 7 Solutions