Question

A discount term of 20/15/5 means: Group of answer choices based on the timing of payment, 1 of the 3 discount options can be applied based on the size of the order, 1 of the 3 options can be applied if all conditions are met, all 3 discounts can be applied to the list price all three discounts are possible but it is rare that all three are able to be applied

Answer 1

Answer: If all conditions are met, all 3 discounts can be applied to the list price

Step-by-step explanation:

This is a series discount which means the following:

20 is for 20% off the list price which leaves 80%.

15 is for 15% off which leaves 85% and,

5 is for 5% off which leaves 95%.

If all conditions placed by the seller are met, all 3 discounts can be applied to the list price.

They are applied by multiplying the discounted price proportions.

= 0.8 * 0.85 * 0.95

= 0.646 will be the discounted price.