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22 April, 22:07

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?

Answers (1)
  1. 22 April, 23:01
    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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