A radio with a net price of $700 and a trade discount rate of 30% has a list price of $1,000.

Question

Quizplus · Accepted Answer

The trade discount rate reduces the net price from the list price, so if the radio has a net price of $700 and a trade discount rate of 30%, we can calculate the list price as follows:

List price = Net price / (1 - Trade discount rate)
List price = $700 / (1 - 0.30)
List price = $1,000

Therefore, the statement is true.

A Radio with a Net Price of $700 and a Trade