Question

A radio has a net price of $700 and a 30% trade discount. What is the list price of the radio?

Answer 1

To find the radio's list price, divide the net price of $700 by 1 minus the trade discount rate of 30%, resulting in a list price of $1000.

Step-by-step explanation:

The student's question concerns the calculation of the list price of a radio when given the net price and a trade discount percentage. To find the list price, we can use the formula List Price = Net Price / (1 - Trade Discount Rate). Here, the net price is $700 and the trade discount is 30% (or 0.30 when expressed as a decimal).

To calculate the list price, we can perform the following steps:

1. Convert the percentage discount to a decimal by dividing by 100: 30% / 100 = 0.30.
2. Subtract the discount rate from 1: 1 - 0.30 = 0.70.
3. Divide the net price by the result from step 2: $700 / 0.70.
4. This gives us the list price of the radio.

When we carry out the division in step 3, we find that the list price of the radio is $1000.