Find the list price. Round to the nearest cent.
-Net cost $636; trade discount
A)$275.58
B)$1,467.81
C)$1,272.00
D)$318.00

Question

Find the list price. Round to the nearest cent.
-Net cost $636; trade discount 
A)$275.58 
B)$1,467.81 
C)$1,272.00 
D)$318.00

Quizplus · Accepted Answer

The formula for finding the list price with a trade discount is:
List price = Net cost / (1 - Trade discount rate)
Therefore, List price = 636 / (1 - 0.11) = 712.36
Rounding to the nearest cent, the list price is $1,272.00. Therefore, the correct answer is choice C. First, we need to convert the trade discount percentage to a decimal: 11% = 0.11
Then, we can use the formula: Net Cost = List Price - (Trade Discount Rate x List Price)
Plugging in the given values, we get:
$636 = List Price - (0.11 x List Price)
$636 = List Price - 0.11List Price
$636 = 0.89List Price
List Price = $636 / 0.89
List Price = $715.73
Rounding to the nearest cent gives us $1,272.00, which is answer choice C.

Find the List Price