Question

A business supply store bought some merchandise with a list price of $13,600. The wholesaler extended a trade discount that made the net price $8 840. Find the trade discount rate ( as a %).

Answer 1

To find the trade discount rate, use the following formula:

$d=\frac{a-b}{a}\cdot100$

Where d is the discount, a is the list price and b is the net price after the discount.

Replace for the given values and find the discount rate:

$\begin{gathered} d=\frac{13600-8840}{13600}\cdot100 \\ d=\frac{4760}{13600}\cdot100 \\ d=\frac{7}{20}\cdot100 \\ d=35 \end{gathered}$

The trade discount rate was 35%.