Trade discount:
In day to day life, measures are taken by the shop keepers to attract the customers by clearing old stocks or raising up their sales. They pretend to sell the goods at lowest price by giving discount to a certain percentage on the marked price.
Relevant terms connected with trade discount:
Marked price (M.P.): Price marked on the article is called Marked price denoted as M.P.
Discount: Certain amount on the marked price is deducted. The deducted amount is called discount
Net price(NP/SP): Selling price or Net price of the article is the final amount of the article after giving discount on the marked price
Successive discounts: Two or more discounts one after the other is called successive discounts.
Formulae Used in Trade Discount:
Selling Price= Marked price - Discount
or S.P. = M.P. - Discount
or Discount = M.P. -S.P.
Discount % = $\frac{Discount}{M.P.}$ X 100
M.P. = $\frac{100 X S.P. }{100-DP}$ where DP is Discount in percentage
Word Problems on Trade Discount
The marked price of the fan is $900.Due to off-season, a discount of 10% is offered on it. Find the selling price of the fan.
Solution:
Discount =10% of marked price
= 10% of 900
= $\frac{10}{100}$ x 900
= $90
Selling price= Marked price – Discount
= $(900-90)
= $810
The price of the shirts was reduced from $1840 to $1380 by a shopkeeper. Find the rate of discount offered
Solution :
Marked price of the shirts= $1840
Selling price of the shirts= $1380
Discount offered on shirts= $( 1840 – 1380 )
= $460
Discount % = $\frac{Discount}{Marked Price}$ x 100
= $\frac{460}{1840}$ x 100
=25%
Therefore, Discount offered = 25%
During off season, successive discounts of 20% and 10% are given. If the marked price of the air conditioner is $12500, find the selling price of the air conditioner.
Solution:
Marked price of the air conditioner = $12500
First Discount = 20% of marked price
=$\frac{20}{100}$ x 12500
= $2500
Price of the air conditioner after first discount= $(12500 – 2500)
= $10000
Second Discount = 10% of price after first discount
= $\frac{10}{100}$ x 10000
= $1000
Therefore, Selling price of the air conditioner =$(10000 – 1000)
=$9000
Find a single discount equal to successive discounts of 25% and 10%
Solution:
Let the marked price be $100
First discount rate = 25% of 100
= $\frac{25}{100}$ x 100
=$ 25
Price after first discount = $(100 – 25)
= $75
Second Discount = 10% of price after first discount
= $\frac{10}{100}$ x 75
= $7.50
Price after second discount = $(75 – 7.50)
=$67.50
Single Discount obtained = $(100 – 67.50)
=$32.50
Single discount equal to successive discounts of 25% and 10% is 32.5%
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