Chapter 8, Problem 1ES

To determine

To calculate: The trade discount of the water heater if the list price is $\$600$ and the single discount rate is $15\%$.

Answer to Problem 1ES

Solution:

The trade discount of the water heater is $\underset{\_}{\$90}$.

Explanation of Solution

Given Information:

The water heater’s list price is $\$600$ and the single discount rate is $15\%$.

Formula used:

Follow the steps to the trade discount using the single trade discount rate.

Step $1$: Determine the single discount rate and the list price.

Step $2$: Multiply the single trade discount rate by the list price.

$\begin{array}{c}\text{Trade discount}=\text{Single trade discount rate}\times \text{List price}\\ T=R\times L\end{array}$

Calculation:

Consider the list price L is $\$600$ and the single discount rate R is $15\%$.

Use Trade Discount formula

$\begin{array}{c}\text{Trade discount}=\text{Single trade discount rate}\times \text{List price}\\ T=R\times L\end{array}$

Compute the trade discount by substituting the list price to $\$600$ and the single discount rate to $15\%$.

$\begin{array}{c}T=R\times L\\ T=15\%\left(\$600\right)\\ T=0.15\left(\$600\right)\\ T=\$90\end{array}$

Hence, the trade discount is $\$90$.