DRILL PROBLEMS

/ Exams & Certification / By

DRILL PROBLEMS For all problems, round your final answer to the nearest cent. Do not round net price equivalent rates or single equivalent discount rates. Complete the following: LU 7-(4) Net price Single equivalent List Chain equivalent discount rate Trade Net Item price discount rate (in decimals) (in decimals) discount price 7-1. Surface computer $1,200 4/1 price Actual !=list cost price ea ce retentrate price-tetul to bryer trade discount 115) 7-2. Samsung Blu-Ray player $199 8/4/3 8/4/3 on $l99 7/3/1 7-3. Canon document scanner $269 Net price Trade discos Complete the following: LU 7-(4) Item List price 7-4. Trotter treadmill $3.000 Chain discount 9/4 $450 8/5/6 7-5. Maytag dishwasher 7-6. Sony digital camera $320 3/5/9 1-1. Land Rover rock SIMSO 12/9/6 7-1. Surface computer $1,200 4/1 Actual =list cost price trade unt ea ce recent rate price – Actual Hobryer discount 7-2. Samsung Blu-Ray player $199 8/4/3 8/4/3 on $199 7-3. Canon document scanner S269 7/3/1 Complete the following: LU 7-1(4) Item List price 7-4. Trotter treadmill $3,000 Chain discount Net price Trade discount 9/4 7-5. Maytag dishwasher $450 8/5/6 7-6. Sony digital camera $320 3/5/9 7-7. Land Rover roofrack $1.850 12/9/6 7-8. Which of the following companies, A or B. gives a higher discount? Use the single equivalent discount rate to make your choice (convert your equivalent rate to the nearest hundredth percent). Company A Company B 8/10/15/3 10/6/16/5 203

The Correct Answer and Explanation is :

Let’s go through the questions step by step:

LU 7-(4) Problems

7-1. Surface Computer – Trade Discount

  • List Price: $1,200
  • Trade Discount: 4/1

To calculate the net price using the trade discount, we apply the discounts sequentially:

  1. The first discount is 4%. The discounted price is ( 1,200 \times (1 – 0.04) = 1,200 \times 0.96 = 1,152 ).
  2. The second discount is 1%. The price after the second discount is ( 1,152 \times (1 – 0.01) = 1,152 \times 0.99 = 1,137.48 ).

So, the net price is $1,137.48.

7-2. Samsung Blu-Ray Player – Chain Discount

  • List Price: $199
  • Chain Discount: 8/4/3

To find the net price using the chain discount, we calculate as follows:

  1. The first discount is 8%. The discounted price is ( 199 \times (1 – 0.08) = 199 \times 0.92 = 183.08 ).
  2. The second discount is 4%. The price after the second discount is ( 183.08 \times (1 – 0.04) = 183.08 \times 0.96 = 175.35 ).
  3. The third discount is 3%. The price after the third discount is ( 175.35 \times (1 – 0.03) = 175.35 \times 0.97 = 170.60 ).

So, the net price is $170.60.

7-3. Canon Document Scanner – Chain Discount

  • List Price: $269
  • Chain Discount: 7/3/1

To find the net price:

  1. The first discount is 7%. The discounted price is ( 269 \times (1 – 0.07) = 269 \times 0.93 = 250.17 ).
  2. The second discount is 3%. The price after the second discount is ( 250.17 \times (1 – 0.03) = 250.17 \times 0.97 = 242.66 ).
  3. The third discount is 1%. The price after the third discount is ( 242.66 \times (1 – 0.01) = 242.66 \times 0.99 = 240.23 ).

So, the net price is $240.23.

7-4. Trotter Treadmill – Chain Discount

  • List Price: $3,000
  • Chain Discount: 9/4

To find the net price:

  1. The first discount is 9%. The discounted price is ( 3,000 \times (1 – 0.09) = 3,000 \times 0.91 = 2,730 ).
  2. The second discount is 4%. The price after the second discount is ( 2,730 \times (1 – 0.04) = 2,730 \times 0.96 = 2,617.20 ).

So, the net price is $2,617.20.

7-5. Maytag Dishwasher – Chain Discount

  • List Price: $450
  • Chain Discount: 8/5/6

To find the net price:

  1. The first discount is 8%. The discounted price is ( 450 \times (1 – 0.08) = 450 \times 0.92 = 414 ).
  2. The second discount is 5%. The price after the second discount is ( 414 \times (1 – 0.05) = 414 \times 0.95 = 393.30 ).
  3. The third discount is 6%. The price after the third discount is ( 393.30 \times (1 – 0.06) = 393.30 \times 0.94 = 369.70 ).

So, the net price is $369.70.

7-6. Sony Digital Camera – Chain Discount

  • List Price: $320
  • Chain Discount: 3/5/9

To find the net price:

  1. The first discount is 3%. The discounted price is ( 320 \times (1 – 0.03) = 320 \times 0.97 = 310.40 ).
  2. The second discount is 5%. The price after the second discount is ( 310.40 \times (1 – 0.05) = 310.40 \times 0.95 = 294.88 ).
  3. The third discount is 9%. The price after the third discount is ( 294.88 \times (1 – 0.09) = 294.88 \times 0.91 = 268.55 ).

So, the net price is $268.55.

7-7. Land Rover Roofrack – Chain Discount

  • List Price: $1,850
  • Chain Discount: 12/9/6

To find the net price:

  1. The first discount is 12%. The discounted price is ( 1,850 \times (1 – 0.12) = 1,850 \times 0.88 = 1,628 ).
  2. The second discount is 9%. The price after the second discount is ( 1,628 \times (1 – 0.09) = 1,628 \times 0.91 = 1,479.48 ).
  3. The third discount is 6%. The price after the third discount is ( 1,479.48 \times (1 – 0.06) = 1,479.48 \times 0.94 = 1,389.23 ).

So, the net price is $1,389.23.

Which Company gives a higher discount?

To determine which company, A or B, gives a higher discount, we will calculate the single equivalent discount for both.

Company A (8/10/15/3):

The single equivalent discount is calculated as:
[
1 – (1 – 0.08) \times (1 – 0.10) \times (1 – 0.15) \times (1 – 0.03)
]
[
1 – (0.92 \times 0.90 \times 0.85 \times 0.97) = 1 – 0.7177 = 0.2823
]
So, the single equivalent discount for Company A is 28.23%.

Company B (10/6/16/5):

The single equivalent discount is calculated as:
[
1 – (1 – 0.10) \times (1 – 0.06) \times (1 – 0.16) \times (1 – 0.05)
]
[
1 – (0.90 \times 0.94 \times 0.84 \times 0.95) = 1 – 0.6851 = 0.3149
]
So, the single equivalent discount for Company B is 31.49%.

Conclusion:

Company B gives a higher discount, with a single equivalent discount of 31.49%, compared to Company A’s 28.23%.

Related Posts

Scroll to Top