Find the trade discount amount for an order of paper supplies with a list price of $25,000, less trade discounts of 30/20/10. Use the single equivalent discount for your answer.

Question

Quizplus · Accepted Answer

The single equivalent discount is calculated by multiplying the complements of the discounts: (1 - 0.30) * (1 - 0.20) * (1 - 0.10) = 0.504. The equivalent discount rate is 1 - 0.504 = 0.496. The trade discount amount is $25,000 * 0.496 = $12,400.

Find the Trade Discount Amount for an Order of Paper