microwave
list price $324.00
series discount 20,10
How would you find TRADE DISCOUNT and NET PRICE?
single discount = 1 - (.8)(.9) = .28 or 28%
net price = 324(.72) = 233.28
To find the trade discount and net price, you will first need to understand what these terms mean.
1. Trade Discount: Trade discount is a reduction in the listed price of a product or service that is offered by the seller to the buyer. It is typically given to customers who buy in bulk or have a long-term relationship with the seller. The trade discount is expressed as a percentage.
2. Net Price: Net price refers to the final price the customer pays after all discounts, including trade discounts, have been applied to the listed price. It is calculated by subtracting the trade discount amount from the listed price.
Given the information provided:
List Price: $324.00
Series Discount: 20,10
To find the trade discount and net price, you can follow these steps:
Step 1: Calculate the trade discount amount for each discount series.
- Start with the list price ($324.00).
- Apply the first discount of 20% by multiplying the list price by 20/100: $324.00 * 20/100 = $64.80.
- Subtract this discount amount from the list price to get the net amount that will be eligible for the next discount: $324.00 - $64.80 = $259.20.
- Apply the second discount of 10% to the net amount by multiplying it by 10/100: $259.20 * 10/100 = $25.92.
Step 2: Calculate the net price.
- Subtract the total trade discount amount from the list price: $324.00 - ($64.80 + $25.92) = $233.28.
- The net price is $233.28.
Therefore, the trade discount for this purchase is $64.80, and the net price is $233.28.