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24 April, 11:04

Best Buy buys an iPod from a wholesaler with a $300 list price and a 5% trade discount. What is the trade discount amount? What is the net price of the iPod?

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  1. 24 April, 11:23
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    Trade discounts are discounts offered to retailers off the list price.

    Thus the retailer pays (300) (1-0.05) = $285 (=net cost of the iPod)
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