Question

Calculate the trade discount rate.Trade discount =Trade discount list price The list price for a boat is $5500. The cost to the retailer is $3850. What is the trade discount rate?

Answer 1

Given:

The list price for a boat is $5500.

The cost to the retailer is $3850.

Required:

We need to find the trade discount rate.

Explanation:

Consider the trade discount rate formula.

$Trade\text{ disounct rate=}\frac{Listprice-sellingprice}{List\text{ price}}\times100$

Substitute list price=5500 and selling price =3850 in the formula.

$Trade\text{ disounct rate=}\frac{5500-3850}{5500}\times100$$Trade\text{ disounct rate=}\frac{1650}{5500}\times100$$Trade\text{ disounct rate=30 \%}$

Final answer:

$Trade\text{ disounct rate=30 \%}$