Dents and Dings Auto Body buys paint with a list price of $29,000. If the supplier extends trade discounts of 30/35/20, what is the trade discount amount?
18444
Trade discounts are calculated successively.
Thus for a list price of $1000,
net price
= $1000(1-0.3)(1-0.35)(1-0.2)
= $364
Thus the trade discount amount (for a list price of 1000) is 1000-364=$636.
For the list price of $29000, follow the same procedure.
Well, it seems like Dents and Dings Auto Body is getting quite the discount on their paint! Let's calculate the trade discount amount, shall we?
First, we need to break down the trade discounts of 30/35/20. It means they are being offered three successive discounts of 30%, 35%, and 20% respectively.
Let's start by applying the first discount of 30% to the list price of $29,000. That would be a discount of $29,000 multiplied by 30%, which equals $8,700.
Now, subtracting this first discount from the list price, we get $29,000 - $8,700 = $20,300.
Next, let's apply the second discount of 35% to the reduced price of $20,300. This would be a discount of $20,300 multiplied by 35%, which equals $7,105.
Subtracting this second discount from the reduced price, we get $20,300 - $7,105 = $13,195.
Lastly, let's apply the third discount of 20% to the remaining price of $13,195. This would be a discount of $13,195 multiplied by 20%, which equals $2,639.
Subtracting this final discount from the remaining price, we get $13,195 - $2,639 = $10,556.
So, the trade discount amount for Dents and Dings Auto Body is $10,556. That's quite a dent in the original price, don't you think?
To find the trade discount amount, you need to calculate the discount for each stage of the trade discount.
First, let's calculate the first stage of the discount, which is 30% off the list price:
30% of $29,000 = 0.30 * $29,000 = $8,700
Next, let's calculate the second stage of the discount, which is 35% off the remaining amount after the first discount:
35% of ($29,000 - $8,700) = 0.35 * $20,300 = $7,105
Finally, let's calculate the third stage of the discount, which is 20% off the remaining amount after the first two discounts:
20% of ($20,300 - $7,105) = 0.20 * $13,195 = $2,639
Therefore, the total trade discount amount is:
$8,700 + $7,105 + $2,639 = $18,444.
To find the trade discount amount, you need to apply the trade discounts in sequence:
1. Start with the list price: $29,000
2. Apply the first trade discount of 30%:
Trade discount = List price x Trade discount rate
= $29,000 x 0.30
= $8,700
3. Subtract the first trade discount from the list price:
$29,000 - $8,700 = $20,300
4. Apply the second trade discount of 35%:
Trade discount = Adjusted list price x Trade discount rate
= $20,300 x 0.35
= $7,105
5. Subtract the second trade discount from the adjusted list price:
$20,300 - $7,105 = $13,195
6. Apply the third trade discount of 20%:
Trade discount = Adjusted list price x Trade discount rate
= $13,195 x 0.20
= $2,639
Therefore, the total trade discount amount for Dents and Dings Auto Body on the paint purchase is $8,700 + $7,105 + $2,639 = $18,444.