An invoice in the amount of $916 is subject to a trade discount of 10% and credit terms of 3/10, n/30. The amount of the trade discount would be

Question

Quizplus · Accepted Answer

To find the trade discount, we first need to find the list price or the amount before discount. Let x be the list price.
According to the question,
List price = $916
Trade discount = 10% = 0.1
Therefore, x - 0.1x = 916 (Applying trade discount formula)
0.9x = 916
x = 916/0.9
x = $1017.78
Now, we can find the trade discount amount by subtracting the list price from the amount after discount.
Trade discount = List price - Amount after discount
Trade discount = $1017.78 - $91.60
Trade discount = $91.18
Hence, the trade discount amount is $91.60.

An Invoice in the Amount of $916 Is Subject to a Trade