Question

Brooks Brothers bought a suit that has a list price of $1,219, with a chain discount of 7/4/2. What is the net price of the suit?

Answer 1

A chain discount of 7 / 4 / 2 means that we have first a 7 % discount, than a 4 % discount, and than a 2 % discount.
Net Price = Original Price  x  Net Price Factor
Net Price Factor = ( 1 - 0.07 ) * ( 1 - 0.04 ) * ( 1 - 0.02 ) = 
= 0.93 * 0.96 * 0.98 = 0.874994
Net Price = $1,219 * 0.874944 = $1,066.56