Question

What is the net cost equivalent of 20/15/15? Do not round.

Answer 1

Sol :

Net cost equivalent of 20/15/15 as follows,

Net cost Equivalent convey how many pennies of cost the buyer must pay for every $1 of List Price. It refers to more than one trade discount in a series. It can be two or more trade discounts combined into a series.

Net cost equivalent of a trade series = (1 – 1st Trade Discount %) x (1 – 2nd Trade Discount %) x (1 – 3rd Trade Discount %)

Trade discount series = 20%/15%/15%

Compliments of Trade discount series = (1-20%)/(1-15%)/(1-15%)

Compliments of Trade discount series = (1-0.20/(1-0.15)/(1-0.15)

Compliments of Trade discount series = 0.80/0.85/0.85

Net cost equivalent = .80 x .85 x .85

Net cost equivalent = 57.80%