Question

The value of a 5.5% trade discount is $90. How much is the list price? L = $_____

Answer 1

Answer:

$95.24

Explanation:

We were given that:

Trade discount percentage = 5.5%

Trade discount = $90

The list price is given by:

$\begin{gathered} ListPrice=\frac{S}{(1-\frac{D}{100})} \\ where: \\ D=discount=5.5\text{\%} \\ S=SalePrice=\text{\ 90} \\ \\ \text{Substituting into the formula, we have:} \\ ListPrice=\frac{90}{(1-\frac{5.5}{100})} \\ ListPrice=\frac{90}{1-0.055} \\ ListPrice=\frac{90}{0.945} \\ ListPrice=\text{\ }95.24 \end{gathered}$

Therefore, the list price is $95.24