Merchandise was purchased at list for $3,460 with a single trade discount of 23%. What
was the net price of this merchandise?
A. $4,255.80 C. $795.80
B. $2,664.20 D. $772.8
would you subtract?
answer being (B)
correct
it looks like you took 3460 - 3460(.23)
= 26642
another way would be to say, well, after 23% is taken off there would be 77% left
so final price = 3460(.77) = 26642
To find the net price of the merchandise after a trade discount, you need to subtract the discount amount from the original price.
The trade discount in this case is 23%. To calculate the discount amount, you would multiply the original price by the discount percentage:
Discount = Original Price * Discount Percentage
Discount = $3,460 * 0.23
Discount = $796.80
To find the net price, you subtract the discount amount from the original price:
Net Price = Original Price - Discount
Net Price = $3,460 - $796.80
Net Price = $2,663.20
So, the net price of the merchandise is $2,663.20, which corresponds to option B.