Question

A dealer altered his trade discount from 15% to 10%. By what percent was the selling price altered?

a) 5%

b) 10%

c) 15%

d) 25%

Answer 1

The selling price was altered by 5%.

Step-by-step explanation:

To find the percent by which the selling price was altered, we need to determine the difference between the original and altered selling prices and calculate that difference as a percentage of the original selling price.

Let's assume the original selling price was $100. A 15% trade discount on this price would result in a selling price of $85 ($100 - 15% of $100). If the dealer altered the trade discount to 10%, the new selling price would be $90 ($100 - 10% of $100).

The alteration in selling price is $90 - $85 = $5. To express this alteration as a percentage of the original selling price ($100), we divide the alteration ($5) by the original selling price and multiply by 100: ($5 / $100) x 100 = 5%.

Therefore, the selling price was altered by 5%.