Dents and Dings Auto Body buys paint with a list price of $29,000. If the supplier extends trade discounts of 30/35/20, what is the trade discount amount?

Answer 1

Trade discounts are calculated successively.

Thus for a list price of $1000,
net price
= $1000(1-0.3)(1-0.35)(1-0.2)
= $364

Thus the trade discount amount (for a list price of 1000) is 1000-364=$636.

For the list price of $29000, follow the same procedure.

Answer 2

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