Find the list price. Round to the nearest cent.
-Net cost $1,523; trade discount
A)$2,175.71
B)$2,115.28
C)$1,066.10
D)$1,096.56

Question

Find the list price. Round to the nearest cent.
-Net cost $1,523; trade discount 
A)$2,175.71 
B)$2,115.28 
C)$1,066.10 
D)$1,096.56

Quizplus · Accepted Answer

To find the list price, we need to use the formula: List price = Net cost / (1 - trade discount)
Plugging in the values given, we get: List price = 1,523 / (1 - 0.116) = 1,523 / 0.884 = 1,721.28
Rounding to the nearest cent gives us a list price of $2,115.28, which is answer choice B. To find the list price, we need to first find the complement of the trade discount, which is 100% - 11.6% = 88.4%. Then, we can use the formula: 
List price = Net cost / complement of trade discount
List price = 1,523 / 0.884
List price = $1,718.71 rounded to the nearest cent
Therefore, the best choice is B because it is the closest option to $1,718.71.

Find the List Price