A watch with a list price of $889.00 is sold by a wholesaler at a net cost of $545.75. Find the single trade discount rate being offered. round to the nearest tenth of a percent
To solve this i did 545.75 divided by 889.00 that gave me 0.61389 which comes out to 61.4% if i round to the nearest tenth of a percent. Am i right?
61.4% is the amount paid. That is not the discount (which is the amount not paid)
okay i get that so would i be correct if i did 889.00*61.4? since trade discount equals list price * trade discount percentage?
54.58 would be my answer
Would I be correct if I put $54.58 as my answer, Steve?
To find the single trade discount rate being offered, you need to calculate the difference between the list price and the net cost, and then find the percentage of that difference.
First, subtract the net cost from the list price:
$889.00 - $545.75 = $343.25
Next, find the percentage of this difference as compared to the list price:
($343.25 / $889.00) x 100 = 38.64%
Rounding to the nearest tenth of a percent gives you approximately 38.6%.
Therefore, your calculation of 61.4% is incorrect. The correct single trade discount rate being offered is approximately 38.6%.