Page 29 - LESSON 2: DISCOUNTS AND COMMISSIONS
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Example 2.

                          Ela's Dress Shop ordered merchandise listed at ₱160. She received an invoice showing
                 the net price as ₱128, What was the discount rate given to Ela?

                 Solution:
                                                               =                   
                                                                                                                        M2_L2

                          Where:                           = ₱160 − ₱128


                                                    = ₱32.00

                                                               =  ₱160


                                                                =  ₱32.00
                                                        ₱160.00
                                                      = 0.20  or  20%   Answer


                     D.  FINDING THE LIST PRICE
                          Thus far, we have discussed how to find the discount and the discount rate. There is still

                 one element in the discount formula which is not accounted for-the list price. If we know the
                 discount and the discount rate, how do we find the list price?


                          The following examples will show us how this is done.

                 Example 1.

                          When Phillip ordered merchandise from a friend, he was given a trade discount of 15%

                 and, thus, saved ₱34.50. What was the list price of the merchandise?

                 Solution:

                          Again, from our discount problem, we have,


                                                             =                       ×                          


                          If we want to get the list price, we have to divide both sides of the equation by the discount
                 rate, as


                                                             (                     ×                           )
                                                       =
                                                                                            

                                                                                   
                                                                       =
                                                                                         


                 LESSON 2: DISCOUNTS AND COMMISSIONS                                                 7 | P a g e
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