An item listed for 4,000 has been given trade discounts of 30%, 20%, and 10% by the manufacturer. 1. What single trade discount rate is equivalent to these series of discounts? 2. How much is the trade discount? 3. What is the net price?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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answer the three questions and show the solution
An item listed for 4,000 has been given trade
discounts of 30%, 20%, and 10% by the
manufacturer.
1. What single trade discount rate is equivalent to
these series of discounts?
2. How much is the trade discount?
3. What is the net price?
Transcribed Image Text:An item listed for 4,000 has been given trade discounts of 30%, 20%, and 10% by the manufacturer. 1. What single trade discount rate is equivalent to these series of discounts? 2. How much is the trade discount? 3. What is the net price?
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