How do you calculate 20% trade discount?
Find the original price (for example $90 ) Get the the discount percentage (for example 20% ) Calculate the savings: 20% of $90 = $18. Subtract the savings from the original price to get the sale price: $90 – $18 = $72.
How to Calculate Trade Discount with Chain Discount
Introduction
Trade discounts are a common form of pricing in business. They are discounts given to a buyer from the listed price of a product. Chain discounts are an additional type of discount that can be applied to the original price. In this article, we will explain how to calculate trade discount with chain discount.
What is a Trade Discount?
A trade discount is a reduction in the price of a product that is given to buyers in order to encourage them to purchase more from the seller. This discount is usually calculated as a percentage of the original price. For example, if the original price of a product is $100 and the trade discount is 10%, then the new price would be $90.
What is a Chain Discount?
A chain discount is an additional discount that can be applied to the original price of a product after the trade discount has been taken into account. This discount is usually calculated as a percentage of the discounted price. For example, if the original price of a product is $100 and the trade discount is 10%, then the new price would be $90. If the chain discount is 5%, then the new price would be $85.50.
How to Calculate Trade Discount with Chain Discount
Calculating trade discount with chain discount is relatively simple. All you need to do is follow these steps:
- Calculate the trade discount by multiplying the original price by the trade discount percentage.
- Calculate the chain discount by multiplying the discounted price by the chain discount percentage.
- Subtract the chain discount from the discounted price to get the final price.
Example
Let’s say you want to calculate the final price of a product with an original price of $100 and a trade discount of 10% and a chain discount of 5%. Here’s how you would do it:
- Calculate the trade discount by multiplying the original price ($100) by the trade discount percentage (10%). The trade discount is $10.
- Calculate the chain discount by multiplying the discounted price ($90) by the chain discount percentage (5%). The chain discount is $4.50.
- Subtract the chain discount ($4.50) from the discounted price ($90) to get the final price of $85.50.
FAQ
Q: What is a trade discount?
A: A trade discount is a reduction in the price of a product that is given to buyers in order to encourage them to purchase more from the seller.
Q: What is a chain discount?
A: A chain discount is an additional discount that can be applied to the original price of a product after the trade discount has been taken into account.
Q: How do I calculate trade discount with chain discount?
A: To calculate trade discount with chain discount, you need to first calculate the trade discount by multiplying the original price by the trade discount percentage. Then, calculate the chain discount by multiplying the discounted price by the chain discount percentage. Finally, subtract the chain discount from the discounted price to get the final price.
Conclusion
In conclusion, calculating trade discount with chain discount is relatively simple. All you need to do is calculate the trade and chain discounts separately and then subtract the chain discount from the discounted price to get the final price. With this information, you should now have a better understanding of how to calculate trade discounts with chain discounts.