Question

Microwave oven has a list price of $125.50. Chain discount is 40/20. What is the netprice?

Answer 1

From the statement, we know that a microwave oven:

• has a list price of $125.50,

• and a chain discount of 40/20.

The net price of the microwave with the chain discount is:

`NP=LP\cdot(1-d_1)\cdot(1-d_2)\text{.}`

Where:

• NP is the net price,

,

• LP is the list price,

,

• d_1 is the first discount in decimals,

,

• d_2 is the second discount in decimals.

In this case, we have:

• LP = $125.50,

,

• d_1 = 40/100 = 0.4,

,

• d_2 = 20/100 = 0.2.

Replacing these data in the formula above, we get:

`NP=\text{ \$125.50 }\cdot(1-0.4)\cdot(1-0.2)=\text{ \$125.50 }\cdot0.6\cdot0.8=\text{ \$60.24.}`

Answer

The net price is $60.24.