What is the equivalent single trade discount for a trade discount series of 40% 12.5% 8 and 2%?

exaMpLe 6.1h Determine the amount of discount for a $100.00 list price subject to the discount series 40%, 12.5%, 8⅓%, and 2%. Rate of discount = Amount of discount/List price = 52.8375/100 = 0.528375 The single equivalent rate of discount is 52.84%.

Introduction

Trade discounts are offered by manufacturers and wholesalers to retailers as an incentive to purchase their products in bulk. They are typically expressed as a percentage off the regular retail price. A trade discount series is a series of multiple trade discounts that are applied to the same purchase. Calculating the equivalent single trade discount for a trade discount series can be a complex task. In this article, we will explain how to calculate the equivalent single trade discount for a trade discount series of 40%, 12.5%, 8%, and 2%.

Calculating the Equivalent Single Trade Discount

The equivalent single trade discount for a trade discount series is calculated by taking the product of all the discounts in the series and then taking the nth root of that product, where n is the number of discounts in the series. To calculate the equivalent single trade discount for a trade discount series of 40%, 12.5%, 8%, and 2%, we would first take the product of all the discounts:

40% x 12.5% x 8% x 2% = 0.0048

Then, we would take the fourth root of 0.0048:

√0.0048 = 0.0625 or 6.25%

Therefore, the equivalent single trade discount for a trade discount series of 40%, 12.5%, 8%, and 2% is 6.25%.

FAQs

What is a trade discount?

A trade discount is a price reduction offered by a manufacturer or wholesaler to a retailer as an incentive to purchase their products in bulk. They are typically expressed as a percentage off the regular retail price.

What is a trade discount series?

A trade discount series is a series of multiple trade discounts that are applied to the same purchase.

How do you calculate the equivalent single trade discount for a trade discount series?

The equivalent single trade discount for a trade discount series is calculated by taking the product of all the discounts in the series and then taking the nth root of that product, where n is the number of discounts in the series.

Conclusion

In conclusion, calculating the equivalent single trade discount for a trade discount series can be a complex task. However, by following the steps outlined above, you can easily calculate the equivalent single trade discount for any given trade discount series. In this article, we have explained how to calculate the equivalent single trade discount for a trade discount series of 40%, 12.5%, 8%, and 2%. The equivalent single trade discount for this series is 6.25%.