A computer store buys some merchandise with a list price of $3,000. If the wholesaler offers trade discount rates of 40/25/10, find the trade discount.
No, it is a series of discounts.
I am not in the US, so I am not familiar with the American notation.
Since you were asked that question, surely you must be able to find it in your text, your notes, or from your teacher.
Explain the meaning of 40/25/10
see I don't know
thats why I'm asking
I think multiply?
To find the trade discount, we need to multiply the list price by the trade discount rate.
The trade discount rate is expressed as three separate percentages: 40/25/10. This means that the wholesaler offers three successive discounts of 40%, 25%, and 10%.
To calculate the trade discount, we calculate the trade discount percent for each discount rate and multiply it with the previous discounted amount.
Let's break down the calculation step by step:
First discount: 40% off the list price:
Trade discount for the first discount = 40% of $3,000
Trade discount for the first discount = (40/100) * $3,000 = $1,200
Second discount: 25% off the already discounted price:
Trade discount for the second discount = 25% of the remaining amount after the first discount
Trade discount for the second discount = (25/100) * ($3,000 - $1,200) = (25/100) * $1,800 = $450
Third discount: 10% off the already discounted price:
Trade discount for the third discount = 10% of the remaining amount after the second discount
Trade discount for the third discount = (10/100) * ($1,800 - $450) = (10/100) * $1,350 = $135
Now we add up all the trade discounts to find the total trade discount:
Total trade discount = Trade discount for the first discount + Trade discount for the second discount + Trade discount for the third discount
Total trade discount = $1,200 + $450 + $135 = $1,785
Therefore, the trade discount for the computer store in this scenario is $1,785.