Question

The list price for a window is $220. Net price is $160. What is the trade discount rate?

Answer 1

Trade discount=list price-net price
Trade discount=220−160=60

Trade discount rate=
trade discount÷list price
60÷220=0.2727×100=27.27%

Check your answer
Net price=220−220×0.2727=160

Answer 2

27.3%.

Explanation:

We have been given that the list price for a window is $220. Net price is $160.

First of all, we will find amount of discount by subtracting $160 from $220.

`\text{Amount of discount}=\$220-\$160`

`\text{Amount of discount}=\$60`

To find the trade discount, we will find 60 is what percent of 220.

`\text{Trade discount rate}=(60)/(220)* 100`

`\text{Trade discount rate}=(6)/(22)* 100`

`\text{Trade discount rate}=0.272727* 100`

`\text{Trade discount rate}=27.2727\%\approx 27.3\%`

Therefore, the trade discount rate is 27.3%.