Question

The Off-Price Store Supply House LLC offers a
trade-discount rate which is 4 times its complement. The net
price is $19.99.
a. What is the list price?
b. What is the trade discount?

Answer 1

Answer: List price = $99.55

Trade Discount = 80%

Explanation:

Let the complement be represented by x

Trade discount will then be = 4x

Complement + Trade Discount = 100%

x + 4x = 100%

5x = 100%

x = 100%/5

x = 20%

Complement = 20%

Trade Discount = 4x = 4 × 20% = 80%

List price = Net price / Complement of trade discount.

= $19.99 / 20%

= $19.99 / 0.2

= $99.95