Question

Creighton Construction ordered $200,000 worth of steel beams for a new project. The invoice listed trade discounts of 30/20/15. The Net Price = $95,200

A. True
B. False

Answer 1

A. True

Step-by-step explanation:

The trade discounts of 30/20/15 indicate that the discounts are deducted one after the other from the list price.

First, you calculate the price after the 30% discount from $200,000:

200,000*(1-0.3)=200,000*0.7= $140,000

Now, you have to calculate the new value after the 20% discount from $140,000:

140,000*(1-0.2)=140,000*0.8= $112,000

Then, you have to calculate the new value after the 15% discount from $1112,000:

112,000*(1-0.15)=112,000*0.85=$95,200

According to this, the Net Price is $95,200 and the statement is true.