A catering company buys some items with a list price of $5,000. If the supplier extends trade discount rates of 35/30/5, find the net price using the net price factor, complement method.


To find the net price using the trade discounts of 35/30/5, we can apply the complement method step by step. Here's how it works:

1. **Find the complements of each discount rate**:  
   The complement is simply $ 100\% - \text{discount}\% $.
   - For 35% discount: $ 100\% - 35\% = 65\% $
   - For 30% discount: $ 100\% - 30\% = 70\% $
   - For 5% discount: $ 100\% - 5\% = 95\% $

2. **Convert the percentages to decimals**:
   - $ 65\% = 0.65 $
   - $ 70\% = 0.70 $
   - $ 95\% = 0.95 $

3. **Multiply the complements together to find the net price factor**:
   \[
   \text{Net Price Factor} = 0.65 \times 0.70 \times 0.95
   \]
   Let's calculate that.

\[
0.65 \times 0.70 \times 0.95 = 0.43225
\]

4. **Find the net price**:
   Now, multiply the net price factor by the original list price:
   \[
   \text{Net Price} = 0.43225 \times 5000 = 2161.25
   \]

Thus, the net price is **$2,161.25**.

Do you need any further details or have any questions?

Here are some related questions:
1. What is the purpose of the complement method in trade discount calculations?
2. How does the complement method simplify multiple discount calculations?
3. What is the difference between trade discount and cash discount?
4. Can the complement method be used for any discount sequence?
5. How does the order of discounts affect the final price?

**Tip:** Always multiply the discount complements (in decimals) in sequence when using the complement method to avoid errors.

A catering company buys some items with a list price of $5,000. If the supplier extends trade discount rates of 35/30/5, find the net price using the net price factor, complement method.

Learn how to calculate the net price for a catering company with a list price of $5,000 using the trade discounts of 35%, 30%, and 5%. This tutorial covers the complement method for trade discount calculations and is suitable for high school students in Grades 9-12.

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