Question 3 The list price of an item is AED 10,000. During a...

Question 3 The list price of an item is AED 10,000. During a sale, the shop offers its customers a chain discount of 5/4 on all purchases. Find the following: a) Net Price Equivalent Rate = b) Single Equivalent Discount Rate = c) Trade Discount Amount = AED d) Net Price = AED

Transcript

00:01 The task in this problem is to solve many subparts and here the value of list price is equals to it will be 1000 and here we can write the drums.

00:12 So it's time to write the value of claim discount and there are two discounts.

00:18 So let us denote d1 as the discount of 5 percentage which can be written as 0 .05 in terms of decimal and the discount 2 as d2.

00:30 And this one will be 0 .04.

00:33 Now in the first part of this very problem, we are required to calculate the value of net price equivalent rate.

00:41 So it is denoted as npe and now it will be r.

00:46 So the formula for net price equivalent rate is equals to 1 minus d1 and it is multiplied with 1 minus d2.

00:57 So, this is here going to be equals to, let us plug in the value and it will be 0 .05 multiplied with 1 minus 0 .04 and this will be here equals to 0 .912.

01:15 So in terms of percentage, we can write the value.

01:19 Remember, the formula that we have used is used when there are multiple discounts.

01:24 So it is net price equivalent rate and this value will be 0 .912 or in terms of percentage it is 91 .2 percentage.

01:37 So let us put the answer inside the box and then we will discuss about the second part of this very problem.

01:45 And in the second part the objective is to find the value of single equivalent discount rate denoted by d.

01:53 So that is equals to 1 minus net price equivalent rate.

01:58 So let us write the formula first.

02:01 And if we plug in the value in this particular formula, then it will be 1 minus it is 0 .912.

02:08 So the final value will be equal to 0 .8.

02:14 And now if we convert this particular value in percentage, then the value of d will be equals to it is here 8 .88 percentage...

Question

Question 3 The list price of an item is AED 10,000. During a sale, the shop offers its customers a chain discount of 5/4 on all purchases. Find the following: a) Net Price Equivalent Rate = b) Single Equivalent Discount Rate = c) Trade Discount Amount = AED d) Net Price = AED

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