Chapter 7 - Buying
Chapter 7 - Buying
Chapter 7 - Buying
DISCOUNT
Discount
Find the trade discount using a single trade
discount rate; find the net price using the
trade discount.
Find the net price using the complement of
the single trade discount rate.
Key Terms
Trade discount: the amount of discount that
the wholesaler or retailer receives off the list
price or the difference between the list price
and the net price
Net price: the price the manufacturer or
retailer pays or the list price minus the trade
discount.
Discount rate: a percent of the list price.
Example
Find the trade discount for a cd player that
retails at $120 and has a trade discount rate of
35%.
Example
1. Find the trade discount for a rug that lists for
$290 and has a trade discount of 30%.
Net Price
Using the trade discount:
Identify the list price and the trade discount.
Subtract the trade discount from the list price.
Trade discount = Rate x List Price
Net Price = List Price Trade discount
Example
Find the net price of a desk that lists for $320
and has a trade discount of 30%.
Trade discount =
Net Price =
Example
1. Find the net price of a camera that lists for
$240 and has a trade discount of 45%.
Cash Discount
Manufacturer or wholesaler will offer discounts
to buyers in order to encourage them to pay
their bills early. A time limit is given and if the bill
is paid before the end of the time limit, the
buyer can deduct the percentage of the bill.
Terms :
3 , n
10
30
three ten , net thirty
Cash Discount
An invoice has following terms: 3 , n
10
30
It is dated November 12. How much time does
the buyer have to pay in order to get the
discount.
Ans : 12 + 10 = 22 , The buyer can pay the bill
anytime on or before November 22 in order to
receive the 3% discount.
Cash Discount
An invoice has following terms: 3 , n
15
30
It is dated November 24. What is the last day
that the invoice can be paid in order to receive
the discount.
Ans : Find number of days left in Nov
30-24 = 6
Count 9 days into December , since 15-6 = 9
Then the bill should be paid on or before
December 9.
Cash Discount
An invoice dated August 18 for 1 dozen belts
costing $192 is sent to a retail store with the
following terms: 3 , 2 , n . If the bill is
10
25
30
Paid on September 1, How much should the
owner pay?
THE END