Question

An exercise bike has a list price of $1000. The manufacturer offers a gym equipment store a trade discount of 20%. The amount of the discount is_____. Remember to use the formula: trade discount = rate× list price

Answer 1

For this case, what we should do is use the given equation.
We have then:
trade discount = rate × list price
Where,
list price = 1000 $
rate = 20 * (1/100) = 0.2
Substituting values we have:
trade discount = (0.2) * (1000)
trade discount = $ 200
Answer:
The amount of the discount is $ 200