{"id":252811,"date":"2025-07-11T12:37:04","date_gmt":"2025-07-11T12:37:04","guid":{"rendered":"https:\/\/learnexams.com\/blog\/?p=252811"},"modified":"2025-07-11T12:37:06","modified_gmt":"2025-07-11T12:37:06","slug":"a-vendor-offers-a-chain-discount-of-8-5-3","status":"publish","type":"post","link":"https:\/\/www.learnexams.com\/blog\/2025\/07\/11\/a-vendor-offers-a-chain-discount-of-8-5-3\/","title":{"rendered":"A vendor offers a chain discount of 8\/5\/3"},"content":{"rendered":"\n<p>A vendor offers a chain discount of 8\/5\/3. What is the net price equivalent discount rate? Question 5 options: a) 120 b) 0.00024 c) 16% d) 0.8478<\/p>\n\n\n\n<p><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-ast-global-color-1-color\">The Correct Answer and Explanation is:<\/mark><\/strong><\/p>\n\n\n\n<p><strong>Correct answer: d) 0.8478<\/strong><\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Explanation<\/strong><\/h3>\n\n\n\n<p>A <strong>chain discount<\/strong> is a series of successive percentage discounts applied one after another on a list price. The vendor in this question offers a chain discount of <strong>8\/5\/3<\/strong>, which means:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>First, apply an 8 percent discount.<\/li>\n\n\n\n<li>Then, apply a 5 percent discount to the new reduced price.<\/li>\n\n\n\n<li>Finally, apply a 3 percent discount to the second reduced price.<\/li>\n<\/ul>\n\n\n\n<p>To calculate the <strong>net price equivalent<\/strong> and then the <strong>net price equivalent discount rate<\/strong>, follow these steps:<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Step 1: Convert each discount to a decimal form of the price retained<\/strong><\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li>8 percent discount \u2192 Retain 92 percent \u2192 0.92<\/li>\n\n\n\n<li>5 percent discount \u2192 Retain 95 percent \u2192 0.95<\/li>\n\n\n\n<li>3 percent discount \u2192 Retain 97 percent \u2192 0.97<\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Step 2: Multiply the retained percentages<\/strong><\/h4>\n\n\n\n<p>Net price factor =<br>0.92 \u00d7 0.95 \u00d7 0.97 =<br>= 0.84778 (rounded to 0.8478)<\/p>\n\n\n\n<p>This <strong>net price factor<\/strong> tells you that the final price after all three discounts is <strong>84.78 percent<\/strong> of the original list price.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Step 3: Calculate the net price equivalent discount rate<\/strong><\/h4>\n\n\n\n<p>Net price equivalent discount rate =<br>1 &#8211; Net price factor =<br>1 &#8211; 0.8478 = <strong>0.1522 or 15.22 percent<\/strong><\/p>\n\n\n\n<p>This means the total discount amount is <strong>15.22 percent<\/strong>, but the <strong>net price equivalent<\/strong> itself is <strong>0.8478<\/strong>.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Therefore<\/strong>, the correct answer to the question is:<\/h4>\n\n\n\n<p><strong>d) 0.8478<\/strong><\/p>\n\n\n\n<p>This value represents the fraction of the original price that the customer actually pays after applying the chain discount of 8 percent, 5 percent, and 3 percent successively.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/learnexams.com\/blog\/wp-content\/uploads\/2025\/07\/learnexams-banner6-272.jpeg\" alt=\"\" class=\"wp-image-252812\"\/><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>A vendor offers a chain discount of 8\/5\/3. What is the net price equivalent discount rate? Question 5 options: a) 120 b) 0.00024 c) 16% d) 0.8478 The Correct Answer and Explanation is: Correct answer: d) 0.8478 Explanation A chain discount is a series of successive percentage discounts applied one after another on a list [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[25],"tags":[],"class_list":["post-252811","post","type-post","status-publish","format-standard","hentry","category-exams-certification"],"_links":{"self":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/252811","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/comments?post=252811"}],"version-history":[{"count":0,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/252811\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/media?parent=252811"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/categories?post=252811"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/tags?post=252811"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}