Question

with a list price of $13,200. The wholesaler extended a trade discount that made the net price $9,900. Find the trade discount rate.

Answer 1

To find the trade discount rate, you can use the formula:

Trade Discount Rate = (List Price - Net Price) / List Price

In this case, the list price is $13,200 and the net price is $9,900. Plugging these values into the formula:

Trade Discount Rate = ($13,200 - $9,900) / $13,200

Trade Discount Rate = $3,300 / $13,200

Trade Discount Rate = 0.25

To express the trade discount rate as a percentage, you multiply it by 100:

Trade Discount Rate = 0.25 * 100

Trade Discount Rate = 25%

Therefore, the trade discount rate is 25%.