The net price equivalent rate of 10/20/5 is 0.684.

Question

Quizplus · Accepted Answer

The net price equivalent rate can be calculated by dividing the net price by the list price. In this case, the net price equivalent rate would be 10/(10+20+5) = 0.333. However, the question is asking for the reciprocal of this rate, which would be (10+20+5)/10 = 3.5. Multiplying 3.5 by 0.196 (which is the decimal form of the discount rate) gives a net price equivalent rate of 0.686, which is close to the given value of 0.684 but not exact.

The Net Price Equivalent Rate of 10/20/5 Is 0.684