Question

Calculate the trade discount rate.Trade discount =Trade discount list price The list price for a boat is $5500. The cost to the retailer is $3850. What is the trade discount rate?

Answer 1

Given:

The list price for a boat is $5500.

The cost to the retailer is $3850.

Required:

We need to find the trade discount rate.

Step-by-step explanation:

Consider the trade discount rate formula.

`Trade\text{ disounct rate=}\frac{Listprice-sellingprice}{List\text{ price}}*100`

Substitute list price=5500 and selling price =3850 in the formula.

`Trade\text{ disounct rate=}(5500-3850)/(5500)*100`
`Trade\text{ disounct rate=}(1650)/(5500)*100`
`Trade\text{ disounct rate=30 \%}`

Final answer:

`Trade\text{ disounct rate=30 \%}`