Question

seans service station purchased 7,000 gallons of unleaded gas for resale. the list price was $6,924. the net price was $5,674. the trade discount rate was around 18.05%?​

Answer 1

To calculate the trade discount rate and the trade discount amount, we can use the following formulas:

Trade discount rate = (List price - Net price) / List price * 100%
Trade discount amount = List price * Trade discount rate

Given the information provided:

List price = $6,924
Net price = $5,674

Let's calculate the trade discount rate and trade discount amount:

Trade discount rate = ($6,924 - $5,674) / $6,924 * 100%
= $1,250 / $6,924 * 100%
≈ 18.05%

Trade discount amount = $6,924 * 18.05%
= $1,250.23

Therefore, the trade discount rate is approximately 18.05%, and the trade discount amount is approximately $1,250.23.