Dents and Dings Auto Body buys paint with a list price of $29,000. If the supplier extends trade discounts of 30/35/20, what is the trade discount amount?

Question

Quizplus · Accepted Answer

The trade discount amount is calculated by first applying each discount in sequence to the list price. The first discount is 30%, the second is 35%, and the third is 20%. The calculation is as follows: $29,000 * 0.70 (since 30% off means paying 70%) = $20,300. Then, $20,300 * 0.65 (for the 35% discount) = $13,195. Finally, $13,195 * 0.80 (for the 20% discount) = $10,556. The trade discount amount is the difference between the original price and the final price: $29,000 - $10,556 = $18,444.

Dents and Dings Auto Body Buys Paint with a List