business math

Question

Calculate the net price that a chain store pays if the list price of the item is  $25.99 but the invoice stipulates a 40/10 chain discount. a)$12.99 b)$13.99 c) $14.03 d) $15.03

Answer 1

The answer can be derived by more than one method. Here is one method.

 

Step 1: (100% - 40%) * (100% - 10%); convert the % figures to decimals, then

 

Step 2: 0.6 * 0.9 = 0.54

 

Step 3: 100% - 54% = 46%; convert the % figure to a decimal

 

Step 4: Discount = $25.99 * 0.46 = $11.96

 

Step 5: Net Cost Price = $25.99 - $11.96 = $14.03