Answer:
Trade discount rate: 20% 16% 5%
Net price factor: 0.63840
Single equivalent discount: 0.36160
Step-by-step explanation:
To calculate the net price factor and single equivalent discount, we need to understand how to combine the trade discounts.
Given:
Trade discount rates: 20%, 16%, and 5%.
First, let's find the net price factor, which is the product of the complements of the discount rates.
The complement of a discount rate is 1 minus the rate.
For the given rates:
Complement of 20%
[tex] = 1 - \dfrac{20}{100} \\\\ = 1 - 0.20 \\\\ = 0.80[/tex]
Complement of 16%
[tex] = 1 - \dfrac{16}{100} \\\\ 1 - 0.16 \\\\ = 0.84[/tex]
Complement of 5%
[tex] = 1 - \dfrac{5}{100} \\\\ 1 - 0.05\\\\ = 0.95[/tex]
Now, multiply these complements to find the net price factor:
[tex] \textsf{Net Price Factor} = 0.80 \times 0.84 \times 0.95 [/tex]
Now, calculate:
[tex] \textsf{Net Price Factor} \approx 0.63840 [/tex]
Now, to find the single equivalent discount, we use the formula:
[tex] \textsf{Single Equivalent Discount} = 1 - \textsf{Net Price Factor} [/tex]
Substitute the value of the net price factor we found:
[tex] \textsf{Single Equivalent Discount} = 1 - 0.63840 [/tex]
Now, calculate:
[tex] \textsf{Single Equivalent Discount} \approx 0.36160 [/tex]
So, the net price factor is approximately 0.63840, and the single equivalent discount is approximately 0.36160.
