Page 30 - LESSON 2: DISCOUNTS AND COMMISSIONS
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From this equation, we can now get the answer to our example 1, thus,
Given: Discount = ₱34.50
Discount rate = 15% or 0.15
List price =?
= ( )
₱34.50
=
0.15
= ₱230 Answer
Example 2.
By taking a trade discount of 25% on a bill of goods, Ricardo saves ₱260. What was the
list price of the merchandise?
Solution:
Given: Discount = ₱260
Discount rate = 25% or 0.25
= ?
=
₱260
=
0.25
= ₱1,040 Answer
E. DISCOUNT SERIES
Occasionally, the business offers a special trade discount in addition to the one ordinarily
given. Thus, a company might advertise that for the next 15 days, all articles are subject not only
to the usual trade discount of 20% but also to a discount rate of 10%. This practice of giving two
or more trade discounts on the same article is known as discount series. Let us look at the illustration
below.
Page | 8 BUSINESS MATHEMATICS: MODULE 2
