Question

Calculate the trade discount Trade discount =list prices x trade discount rate. Net price =list price-trade discount.The list price for watches is $50. The trade discount rate is 10%. What is the trade discount in dollars? What is the net price?

Answer 1

Explanation

We are asked to find the trade discount and net price

To do so, we will have the following

Step 1: Calculate the trade discount

$Trade\text{ }discount=listprices\text{ }\times trade\text{ }discount\text{ }rate$

In our case

$\begin{gathered} list\text{ price = \ 50} \\ trade\text{ discount rate = 10 \%} \end{gathered}$

Thus, the trade discount will be

$Trade\text{ discount= \ 50}\times\frac{10}{100}=\text{ \ 50}\times0.1=\text{ \ 5}$

Trade Discount = $5

Step 2: Calculate the net price

$Net\text{ }price=list\text{ }price-trade\text{ }discount.$

The net price will be

$Net\text{ price = \ 50 - \ 5 = \ 45}$

The Net Price will be $45