Question

Calculate the net price factor and single equivalent discount. for convenience, round your answers to five decimal places when necessary.

Answer 1

To calculate the net price factor, subtract individual trade discounts converted to decimals from 1 and multiply the results. Then subtract this factor from 1 to get the single equivalent discount. Rounding to a specific number of significant figures may be required for final answers.

Step-by-step explanation:

The net price factor is calculated by subtracting each individual trade discount rate as a decimal from 1 and then multiplying the results together. The single equivalent discount is the complement to the net price factor, which means it is found by subtracting the net price factor from 1.

To calculate these values step-by-step:

1. Convert each trade discount given to a decimal form.
2. For each discount, subtract it from 1 (e.g., for a 20% discount, use 1 - 0.20).
3. Multiply these values together to find the net price factor.
4. To find the single equivalent discount, subtract the net price factor from 1.

Let's say the discounts given are 10% and 15%. First, we convert them to decimals: 0.10 and 0.15. Then find the complements: 0.90 and 0.85. Multiply them to get the net price factor: 0.90 x 0.85 = 0.765. Lastly, subtract from 1 to find the single equivalent discount: 1 - 0.765 = 0.235 or 23.5%.

Rounding is typically required when presenting the final answer. The provided examples show how to appropriately round numbers to a specific number of significant figures or decimal places based on the context. If, for instance, a calculator shows the number 2,085.5688, but we require five significant figures, we round it to 2,085.6 because the next digit, 8, is greater than 5.