Tutorial
1
1. Ali bought a computer listed at RM 5,000. He was given trade discounts of 20%, 10% and 5%.
Find the net price of the computer.
𝑁𝑃 = 5000(1 − 0.2)(1 − 0.1)(1 − 0.05) = 𝑅𝑀 3,420
(October 2016, Ans: RM 3,420)
2. An invoice dated 26 October 2014 amounted to RM 8,260 was offered trade discounts of 7%,
2% and cash discount terms of 3/15, 2/30, n/60. Find:
a. The net price after trade discount (RM 7,528.16)
𝑁𝑃 = 8260(1 − 0.07)(1 − 0.02) = 𝑅𝑀 7,528.16
b. The amount paid on 17 November 2014 (RM 7,377.60)
𝑁𝑃 = 7528.16(1 − 0.02) = 𝑅𝑀 7,377.60
(October 2016)
3. The net price of an item after trade discounts of X% and 8% is RM 4,350. Find the value of X
if the list price is RM 4,943.
4350 = 4943(1 − 𝑋)(1 − 0.08)
4350
= 1 − 𝑋
4943(0.92)
0.95656 = 1 − 𝑋
𝑋 = 1 − 0.95656
𝑋 = 0.04344 = 4.34%
(March 2017, Ans: 4.34%)
4. An invoice dated 23 April 2017 was received by Anna Scarves for the purchase of 120 shawls
at RM 10 each. The owner was offered trade discounts of 10% and 8% and cash discount
terms of 5/15, 3/20 and n/30. Find:
a. the single discount equivalent to the trade discounts given, (17.2%)
𝑑 = [1 − (1 − 0.1)(1 − 0.08)] × 100% = 17.2%
b. the last day to receive the 3% cash discount, (13 May 2017)
23/4 – 30/4 = 7 + 13 = 20 days,
Hence, the last day to receive the 3% cash discount is on 13th May 2017
c. the amount due if the owner pays the invoice on 10 May 2017 (RM 963.79)
𝑁𝑃 = (120(10))(1 − 0.172)(1 − 0.03) = 𝑅𝑀 963.79
(December 2018)
5. A handbag is given a trade discount rates of 10% and 8%. Calculate the list price of the
handbag if the net price is RM 239.29.
239.29 = 𝐿𝑃(1 − 0.10)(1 − 0.08)
239.29
= 𝐿𝑃
0.828
𝐿𝑃 = 𝑅𝑀 289
(February 2019, Ans: RM 289)
6. A SweatyBetty backpack is advertised for RM Y less 8% and 5%. Find Y if the customer paid
RM363.50 for the backpack, including the delivery cost of RM13.
363.50 − 13 = 𝑌(1 − 0.08)(1 − 0.05)
350.50
= 𝑌
0.874
𝑌 = 𝑅𝑀 401.03
(February 2021, Ans: RM 401.03)
7. Kai Meng bought a generator with trade discounts of 20%, 8% and 5%. The net price was
RM34,960 and the transportation charge was RM500. The invoice was dated 26th February
2019 with cash terms 7/15, 3/20, n/30.
i) Find the list price of the generator. (RM 50,000)
ã NFAZ | OCT 2022
34960 = 𝑌(1 − 0.2)(1 − 0.08)(1 − 0.05)
2
34960
= 𝑌
0.6992
𝑌 = 𝑅𝑀 50,000
ii) Determine the single discount equivalent rate to the trade discounts given. (30.08%)
𝑑 = [1 − (1 − 0.2)(1 − 0.08)(1 − 0.05)] × 100% = 30.08%
iii) Find the amount to be paid if the payment was made on 12th March 2019.(RM 33,012.80)
𝑁𝑃 = 50000(1 − 0.3008)(1 − 0.07) = 𝑅𝑀 32,512.80
𝐴𝑚𝑜𝑢𝑛𝑡 𝑡𝑜 𝑏𝑒 𝑝𝑎𝑖𝑑 = 32512.80 + 500 = 𝑅𝑀 33,012.80
(February 2022)
8. Tunggak Jaya Enterprise bought wood stoves from a wholesaler at a listed price of RM 850
per unit with trade discounts of 25% and x%. if the amount of trade discount obtained was
RM244.35, find the value of x.
850 − 244.35 = 850(1 − 0.25)(1 − 𝑥)
605.65 = 637.5(1 − 𝑥)
0.95 = 1 − 𝑥
𝑥 = 1 − 0.95
𝑥 = 0.05 = 5%
(June 2019, Ans: x = 5%)
9. On 14 June 2006, GG Truck Company received an invoice for the following items:
Item Quantity Price per Unit (RM)
Tyre 8 110
Battery 12 160
Sport Rim 15 180
The transportation cost is RM 400. The company received trade discounts of 10%, and 15%,
and cash discount terms of 4/10, n/30. Calculate:
a. the single discount rate equivalent to the given trade discounts (23.5%)
𝑑 = [1 − (1 − 0.1)(1 − 0.15)] × 100% = 23.5%
b. the last date to get the 4% cash discount (24/6/2006)
14 June + 10 days = 24 June 2006
c. the amount of trade discount received. (RM 1,292.50)
𝐿𝑃 = 5500
𝐷 = 5500(0.235) = 𝑅𝑀 1,292.50
d. the amount paid if payment was made on 20 June 2006. (RM 4,439.20)
14 𝐽𝑢𝑛𝑒 − 20 𝐽𝑢𝑛𝑒 = 6 𝑑𝑎𝑦𝑠; 𝐶 = 0.04
𝑁𝑃 = 5500(1 − 0.235)(1 − 0.04) = 𝑅𝑀 4,039.20
𝐴𝑚𝑜𝑢𝑛𝑡 𝑡𝑜 𝑏𝑒 𝑝𝑎𝑖𝑑 = 4039.20 + 400 = 𝑅𝑀 4,439.29
(October 2007)
10. Explain the cash discount terms 5/10, 3/20, n/30.
5/10 – 5% discount will be given if payment is made within 10 days from the date of
invoice.
3/20 – 3% discount will be given if payment is made within 11 days to 20 days from the
date of invoice.
n/30 – full amount of price @ net with no discount is due from 21 days to 30 days after
the date of invoice.
Credit period is 30 days from the date of the invoice.
(March 2004)
ã NFAZ | OCT 2022
