A second hand Furniture store buys sofas with a list price of 9,500. IF the wholesaler offers trade discounts of 10/20/30, find the single equivalent discount.
First you need to find out what 10/20/30 means.
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To find the single equivalent discount, we need to combine the trade discounts offered by the wholesaler.
The trade discounts 10/20/30 means that the wholesaler is offering three levels of discounts:
- A 10% discount for the first level
- An additional 20% discount on the remaining amount after the first discount
- An additional 30% discount on the remaining amount after the first two discounts
Let's calculate the single equivalent discount step by step:
First, calculate the amount after the first 10% discount:
List price = $9,500
10% discount = 10/100 * $9,500 = $950
Amount after the first discount = $9,500 - $950 = $8,550
Next, calculate the amount after the additional 20% discount:
20% discount on $8,550 = 20/100 * $8,550 = $1,710
Amount after the first two discounts = $8,550 - $1,710 = $6,840
Finally, calculate the amount after the additional 30% discount:
30% discount on $6,840 = 30/100 * $6,840 = $2,052
Amount after all three discounts = $6,840 - $2,052 = $4,788
Therefore, the single equivalent discount is $4,788.
Note: The single equivalent discount represents the total discount offered if we had just one discount instead of multiple discounts. It simplifies the calculation by combining the effects of all the separate discounts into a single percentage or amount.