Scenario Problem 4: Missing Trade Discount
Rate
Context: Kevin recieved an invoice for \($1,000 from a wholesaler, which after applying a trade discount , was reduced to $\)900.
Task: Determine the rate of the trade discount that
was applied.
Solution:
1) Calculate the difference between the original Price and
the discounted Price:
• Difference = \($1,000 - $\)900 = \($100 1) Calculate the trade discount rate: A ($\)100/$1,000) x 100% = 10%
Rate
Context: Kevin recieved an invoice for \($1,000 from a wholesaler, which after applying a trade discount , was reduced to $\)900.
Task: Determine the rate of the trade discount that
was applied.
Solution:
1) Calculate the difference between the original Price and
the discounted Price:
• Difference = \($1,000 - $\)900 = \($100 1) Calculate the trade discount rate: A ($\)100/$1,000) x 100% = 10%