Jesses landscaping business needs a new trimmer Jesse can fi

Jesse\'s landscaping business needs a new trimmer. Jesse can find one at his usual distributor for $245 with a single trade discount of 8%. He has also seen one at a retailer for $320 with a trade discount series of 5/15/10. Which is the better deal? And what is the net price he pays for that trimmer?

Solution

The discount given by his usual distributor = $245 x 8 / 100 = $ 19.60

Hence, the deal with distributor amounts to = $ 245 - $ 19.60 = $ 225.40

The trade discount series of 5/15/10 on $ 320

Now, applying 5% on $ 320 the amount to be paid = $ 320 x (1 - 0.05) = $ 304

then applying 15% on $ 304 the amount to be paid = $ 304 x (1 - 0.15) = $ 258.4

finally applying 10% on $ 258.4 the deal with retailer = $ 258.4 x (1 - 0.10) = $ 232.56

Since, $ 232.56 > $ 225.40, hence the deal with distributor is better.

The net price he pays = $ 225.40