2.FIND THE TRADE DISCOUNT
cost price = RM1780
rate of trade discounot = 30%,10% and 5%
as we know to get trade discount is= list price X trade disount rate
so i do : RM1780x0.3xo.1xo.o5 = RM2.67
BUT in my book the answer is RM714.67.
WHAT the step or formula that i cannot make to solve this question .pls help me
One step calculation
price = 1780(.7)(.9)(.95)
= 1065.33
Discount = 1780-1065.33 = $714.67
or
first discount = .3(1780) = 534
leaving 1246
2nd discount = .1(1246) = 124.60
leaving 1121.4
3rd discount = .05(1121.4 = 56.07
leaving 1065.33
Discount = 1780 - 1065.33 = 714.67 as above
your calculation is a meaningless calculation.
To find the trade discount, you need to calculate the discounted amount based on the given rate.
In this case, there are three different rates: 30%, 10%, and 5%. To calculate the total trade discount, you multiply the cost price by each rate and subtract it from the cost price.
Let's break down the calculation step by step:
1. Rate 1: 30%
Trade discount = Cost price × Rate 1
Trade discount = RM1780 × 0.30
Trade discount = RM534
2. Rate 2: 10%
Trade discount = Remaining cost price × Rate 2
Remaining cost price = Cost price − Trade discount from Rate 1
Remaining cost price = RM1780 − RM534 = RM1246
Trade discount = Remaining cost price × Rate 2
Trade discount = RM1246 × 0.10
Trade discount = RM124.60
3. Rate 3: 5%
Trade discount = Remaining cost price × Rate 3
Remaining cost price = Cost price − Trade discount from Rate 1 and Rate 2
Remaining cost price = RM1780 − (RM534 + RM124.60) = RM1121.40
Trade discount = Remaining cost price × Rate 3
Trade discount = RM1121.40 × 0.05
Trade discount = RM56.07
4. Total trade discount = Trade discount from Rate 1 + Trade discount from Rate 2 + Trade discount from Rate 3
Total trade discount = RM534 + RM124.60 + RM56.07
Total trade discount = RM714.67
So, the correct trade discount for the given rates is RM714.67, which matches the answer in your book.