Explanation Given Information: The list price is $ 2 , 874.95 and trade discount rates are 30 / 20 / 5.5 . Formula used: Compute the net price factor by subtracting each rate from 100 % , then multiply all the resultant 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 net price is computed by multiplying the list price by net price factor. Net price = List price × Net price factor Calculation: Consider that the list price is $ 2 , 874.95 and trade discount rates are 30 % , 20 % and 5.5 % . Compute complements of the trade discount rates in series by subtracting them from 100 % . 100 % − 30 % = 70 % = 0.80 100 % − 20 % = 80 % = 0.80 100 % − 5.5 % = 94.5 % = 0

Contemporary Mathematics for Business and Consumers

7th Edition

ISBN: 9781285189758

Author: Robert Brechner, George Bergeman

Publisher: Cengage Learning

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Chapter 7.III, Problem 17RE

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To calculate: The net price factor, single equivalent discount, trade discount and net price if list price is $2,874.95 and trade discount rate are 30/20/5.5. Round the net price factors to five decimal places when required.

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Chapter 7.III, Problem 16RE

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Contemporary Mathematics for Business and Consumers

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The net price factor, single equivalent discount, trade discount and net price if list price is $ 2 , 874.95 and trade discount rate are 30 / 20 / 5.5 . Round the net price factors to five decimal places when required.

Solution Summary: The author calculates the net price factor by subtracting each rate from 100% and multiplying all the resultant decimals together.

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To calculate: The net price factor, single equivalent discount, trade discount and net price if list price is $2,874.95 and trade discount rate are 30/20/5.5. Round the net price factors to five decimal places when required.

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