Brooks Brothers bought a suit that has a list price of $1,219, with a chain discount of 7/4/2. What is the net price of the suit?

Question

Quizplus · Accepted Answer

First, we need to find the equivalent single discount rate (ESDR) using the formula:

ESDR = 1 - (1-d1)(1-d2)(1-d3)

where d1, d2, and d3 are the three chain discounts:

d1 = 7%
d2 = 4%
d3 = 2%

Plugging in the values, we get:

ESDR = 1 - (1-0.07)(1-0.04)(1-0.02) = 0.1277

Next, we can use the ESDR to compute the net price (NP) by multiplying it by the list price (LP):

NP = LP * ESDR = $1,219 * 0.1277 = $155.56

Therefore, the net price of the suit is $1,066.56, which is closest to choice C ($1,066.56). The other choices are not even close to the computed net price using the given chain discounts.

Brooks Brothers Bought a Suit That Has a List Price