Math Problem Statement

A photographer buys some merchandise with a list price of $9,000. If the supplier offers trade discount rates of 20/10/5, find the trade discount (in $). (Find the single equivalent discount first.)

Solution

To find the trade discount, we first need to compute the single equivalent discount for the discount rates of 20%, 10%, and 5%. We apply each discount successively on the remaining price after the previous discount has been applied.

Step-by-step process:

  1. List price = $9,000

  2. First discount (20%):
    New price=9,000×(10.20)=9,000×0.80=7,200\text{New price} = 9,000 \times (1 - 0.20) = 9,000 \times 0.80 = 7,200

  3. Second discount (10%):
    New price=7,200×(10.10)=7,200×0.90=6,480\text{New price} = 7,200 \times (1 - 0.10) = 7,200 \times 0.90 = 6,480

  4. Third discount (5%):
    New price=6,480×(10.05)=6,480×0.95=6,156\text{New price} = 6,480 \times (1 - 0.05) = 6,480 \times 0.95 = 6,156

The final price after applying all discounts is $6,156.

Trade Discount:

Trade Discount=9,0006,156=2,844\text{Trade Discount} = 9,000 - 6,156 = 2,844

Thus, the total trade discount is $2,844.

Would you like more details on any step, or further clarification?

Here are five related questions:

  1. How would the trade discount change if the last discount was 7% instead of 5%?
  2. What would be the equivalent single discount rate for the combined 20/10/5 trade discounts?
  3. How does the order of applying discounts affect the final price?
  4. What is the formula for calculating the single equivalent discount for multiple trade discounts?
  5. How would the final price change if the initial list price was $12,000 instead of $9,000?

Tip: Always apply trade discounts sequentially rather than adding them together directly!

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Math Problem Analysis

Mathematical Concepts

Percentage Discounts
Successive Discounts
Trade Discount Calculation

Formulas

Final Price after Discount = List Price × (1 - Discount Rate)
Trade Discount = List Price - Final Price

Theorems

Successive Discount Theorem

Suitable Grade Level

Grades 9-12