Calculate the amount of the trade discount

smartangel88 · #1 Feb 10, 2008, 10:54 AM

An amusement park purchased equipment from a manufacturer for a list price of
$42,000, minus trade discounts of 30/20/15. Calculate the amount of the trade discount
on the purchase.
A. $19,992 C. $23,520
B. $22,008 D. $29,400

I got totally confused with this one, please can somebody help...

Serendipity3 · Feb 10, 2008, 11:16 AM

The answer is (d) again

meafunchic · Feb 10, 2008, 11:28 AM

SmartAngel:

Your answer is B. Here's how:

42000 X 30% = 12,600 (42000-12600=29400) so,
29400 X 20% = 5,880 (29400-5880=23520) so,
23530 X 15% = 3,528 so,

12600 + 5880 + 3528 = $22,008

Hope this helps!

Meafunchic



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