A second hand furniture store buys sofas with a list price of $9,500. If the wholesaler offers trade discounts of 10/20/30, find the single equivalent discount.

Question

Quizplus · Accepted Answer

The single equivalent discount can be calculated by multiplying the complements of each discount rate: $1 - 0.10 = 0.90$, $1 - 0.20 = 0.80$, and $1 - 0.30 = 0.70$. Multiplying these together gives $0.90 \times 0.80 \times 0.70 = 0.504$. The single equivalent discount is $1 - 0.504 = 0.496$.

A Second Hand Furniture Store Buys Sofas with a List