Question

A retailer was given a trade discount are 15% and cash discount of 6% by the wholesaler. How much did the retailer pay for a good marked price for $3745

Answer 1

Answer: $2992.26

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Explanation:

If you're given a 15% discount, then you still have to pay the remaining 85% (because 100% - 15% = 85%)

Rewrite 85% into 0.85

The multiplier for "15% discount" is 0.85

Similarly, the multiplier for a 6% discount is 0.94; note how 100% - 6% = 94% = 0.94

When we have multiple discounts chained together like this we find the product of the multipliers. So we multiply the 0.85 and 0.94 to get

0.85*0.94 = 0.799

After chaining together the two discounts, you will have to pay 79.9% of the original value. This means the overall discount is 20.1%

Take the result of 0.799 and multiply that with the marketed price of $3745 to get the final answer

0.799*3745 = 2,992.255 which rounds to 2,992.26