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Contemporary Mathematics for Busin...

8th Edition
Robert Brechner + 1 other
ISBN: 9781305585447

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BuyFindarrow_forward

Contemporary Mathematics for Busin...

8th Edition
Robert Brechner + 1 other
ISBN: 9781305585447
Textbook Problem

Write the formula for the trade discount rate. (7-5)

To determine

The formula for calculating the trade discount rate.

Explanation

The rate at which the list price is reduced before sale is called the trade discount rate. It is computed by dividing the trade discount by the list price.

The formula for the trade discount rate is,

Trade discount rate=Trade discountList price

For example, the list price is $4,500 and trade discount is $935.

Compute the trade discount rate by substituting list price to $4,500 and trade discount to $935

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