A wholesale business sells goods with a list price of $900 and a trade discount of 40 percent.The net price is

Question

Quizplus · Accepted Answer

The trade discount of 40% means that the customer will receive a 40% reduction on the list price of $900.

40% of $900 = 0.40 x $900 = $360

So, the net price (price after the trade discount) will be:

List price - Trade discount 
$900 - $360 = $540

Therefore, the net price of the goods is $540, which is option B.

A Wholesale Business Sells Goods with a List Price of $900