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The China Company offers a trade-discount rate that is 4 times the complement of the trade-discount rate. If the list price is $58.75, what is the trade discount? What is the net price?

User Jhylands
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1 Answer

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Answer: See explanation

Explanation:

Since the complement is the difference between 100% and discount rate. Since the China Company offers a trade-discount rate that is 4 times the complement of the trade-discount rate. Therefore, the discount rate will be 80% and the complement 20%.

Therefore, the trade discount will be:

= List price × Trade discount rate

= $58.75 × 80%

= $58.75 × 0.8

= $47

Net price = List price - Trade discount

= $58.75 - $47

= $11.75

User Kabeersvohra
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