Question

Find the complement rate for each discount in the given series of trade discounts. Then find the net price, using the complement method. Do not round intermediate computations. Complement Rates List Price Trade Discount First Second Third Net Price $4,000 60%, 30%, 20%

First %

Second %

Third %

Net Price $

Answer 1

	List Price		=	$       4,000
Less:	Trade Discount:
	First Discount @60%		=	$       2,400
	Second Discount @30%		=	$           480
	Third Discount @20%		=	$           224
	Net Price		=	$           896
	Workings:
	List Price		=	$       4,000
Less:	First Discount @60%	($4000*0.6)	=	$       2,400
	Net Price		=	$       1,600
Less:	Second Discount @30%	($1600*0.3)	=	$           480
	Net Price		=	$       1,120
Less:	Third Discount @20%	($1120*0.2)	=	$           224
	Net Price		=	$           896