What was the trade discount rate Royal received?

Question

Royal Furniture bought a sofa for $950. The sofa had a $1,550 list price. What was the trade discount rate Royal received? (Round your answer to the nearest hundredth percent.)

Answer 1

The amount of the discount = list price - discounted price = 1550 - 950 = 600

 

How much of a discount did Royal receive?

 

Use the equation p = w * %

 

p = the part of the whole

 

w = the whole amount

 

% = percent of the whole

 

600 = 1550 * %

 

% = 600/1550 = 2/5 = 0.387 = 38.7%

 

Royal received approximately a 39% discount off of the list price