Math Problem Statement

Solve the problem. Round to the nearest cent.

The list price of a keyboard is $597. If the series discount offered is 10/25/35, what is the net cost after trade discounts?

A.

$261.93

B.

$335.07

C.

$179.10

D.

$417.90

Solution

To solve this problem, we need to apply the series of trade discounts (10%, 25%, and 35%) sequentially to the list price of the keyboard, which is $597.

Step-by-step calculation:

  1. First discount (10%):
    The first discount is 10% of the list price.
    10% of 597=597×0.10=59.7010\% \text{ of } 597 = 597 \times 0.10 = 59.70 Subtracting this from the list price:
    59759.70=537.30597 - 59.70 = 537.30

  2. Second discount (25%):
    The second discount is 25% of the remaining amount after the first discount, which is $537.30.
    25% of 537.30=537.30×0.25=134.3325\% \text{ of } 537.30 = 537.30 \times 0.25 = 134.33 Subtracting this from the remaining amount:
    537.30134.33=402.98537.30 - 134.33 = 402.98

  3. Third discount (35%):
    The third discount is 35% of the remaining amount after the second discount, which is $402.98.
    35% of 402.98=402.98×0.35=141.0435\% \text{ of } 402.98 = 402.98 \times 0.35 = 141.04 Subtracting this from the remaining amount:
    402.98141.04=261.94402.98 - 141.04 = 261.94

Final result:

The net cost after the series of trade discounts is approximately $261.94, which rounds to $261.93.

Thus, the correct answer is:

A. $261.93


Do you have any questions or want further details? Here are 5 related questions to expand your understanding:

  1. What would the net cost be if the series of discounts were 15/20/30 instead?
  2. How do trade discounts affect the overall profitability for a business?
  3. What is the cumulative percentage of discount applied in this case?
  4. How would the net cost change if only a single discount of 40% was applied instead of the series?
  5. Can you find a formula to calculate the final price after multiple successive discounts?

Tip: When applying multiple discounts, it's important to apply each one sequentially on the reduced price, not on the original price.

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Math Problem Analysis

Mathematical Concepts

Percentages
Sequential Discounts
Trade Discounts

Formulas

First discount: Discount = List Price × Discount Percentage
Remaining Amount = Previous Amount - Discount
Repeat for each successive discount

Theorems

Percentage-based Discount Calculation

Suitable Grade Level

Grades 10-12