Solve the problem. Round to the nearest cent.
-The list price of a keyboard is $670. If the series discount offered is 10/15/5, what is the net cost after trade discounts?
A)$183.08
B)$469.00
C)$486.92
D)$201.00

Question

Quizplus · Accepted Answer

The net cost after trade discounts can be found by taking the list price and applying each discount in sequence.

First, we take the list price of $670 and apply the first discount of 10% off:

$670 * 0.9 = $603

Next, we take the discounted price of $603 and apply the second discount of 15% off:

$603 * 0.85 = $512.55

Finally, we take the discounted price of $512.55 and apply the third discount of 5% off:

$512.55 * 0.95 = $486.92

Therefore, the net cost after trade discounts is $486.92, which is closest to option C ($486.92). The net cost after the series discount of 10/15/5 can be calculated as: 
List price = $670 
Discount 1 = 10% 
Discount 2 = 15% 
Discount 3 = 5%

So, Net cost = List price - (Discount 1 + Discount 2 + Discount 3)

Discount 1 = 10% of $670 = $67 
List price after Discount 1 = $670 - $67 = $603

Discount 2 = 15% of $603 = $90.45 
List price after Discount 1 and Discount 2 = $603 - $90.45 = $512.55

Discount 3 = 5% of $512.55 = $25.63

Therefore, the net cost after all discounts = $512.55 - $25.63 = $486.92

So, the best choice is (C) $486.92.

Solve the Problem. Round to the Nearest Cent