Question

3. Find (a) the net cost equivalent and (b) the single discount equivalent for a

series discount of 5/10/12.

Answer 1

Answer:(a) To find the net cost equivalent, we can use the formula:

Net Cost Equivalent = Original Cost / (1 - (Discount Rate / 100))

Using this formula, the net cost equivalent for a series discount of 5/10/12 is:

Net Cost Equivalent = Original Cost / (1 - (5/100)) / (1 - (10/100)) / (1 - (12/100))

(b) To find the single discount equivalent for a series discount of 5/10/12, we can use the formula:

Single Discount Equivalent = (1 - (1 - (Discount Rate1 / 100)) x (1 - (Discount Rate2 / 100)) x ... x (1 - (Discount RateN / 100))) x 100

Using this formula, the single discount equivalent for a series discount of 5/10/12 is:

Single Discount Equivalent = (1 - (1 - (5/100)) x (1 - (10/100)) x (1 - (12/100))) x 100