Question

Suppose the catalog price of an item is $475 and the trade-discount rate is 15%. What is the correct setup to find net price?

A. Net Price = $475 – 85%
B. Net Price = $475 * 15%
C. Net Price = $475 * 85%
D. Net Price = $475 – $15

Answer 1

The formula is
Net price= list price-trade discount

List price 475

Trade discount=list price×trade discount rate
Trade discount=475×0.15=71.25
Net price=475−71.25=403.75

But your options are in different way
To find The net price after the trade discount is 85% (100%-15%)
So the correct setup to find net price is C. Net Price = $475 * 85%
Net price=475×0.85=403.75