Calculate the trade discount and net price (in $) to the nearest cent.   LIST PRICE :$289.00 TRADE DISCOUNT RATE: 25%

International Financial Management
14th Edition
ISBN:9780357130698
Author:Madura
Publisher:Madura
Chapter5: Currency Derivatives
Section: Chapter Questions
Problem 4QA
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Calculate the trade discount and net price (in $) to the nearest cent.
 
LIST PRICE :$289.00
TRADE DISCOUNT RATE: 25%
Expert Solution
Step 1

Net price:

While making a deals, generally the net prices are considered as dues by the dealer. The net price is arrived at after deducting the discounts from list price.

 

Net Price = List Price - Trade Discount

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