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Trade Discount and Discount Series

TRADE DISCOUNT AND DISCOUNT SERIES-PPT

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Norilyn Florin-Alapad
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212 views

Trade Discount and Discount Series

TRADE DISCOUNT AND DISCOUNT SERIES-PPT

Uploaded by

Norilyn Florin-Alapad
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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TRADE DISCOUNT AND

DISCOUNT SERIES
BUSINESS MATHEMATICS
10-14-2022
Can you think something about me?
Have you tried
buying bulk items or
wholesale items.
Did the seller gave
you a discount?
At the end of the lesson you will know
the following:

1. What is a discount? A
trade discount?
2. What is a net invoice
price?
DISCOUNT – a reduction from
the list price given to
customers or buyers at the
discretion of the seller.
It can be due to large volume
of purchases or any other
special occasions.
NET INVOICE PRICE - the
amount to be paid after
deducting the amount of the
discount
LIST PRICE is the fee for a
service or product before
discounts are reduced or sales
are added.
Formula in getting the
discount:
Discount = List Price x Rate of
Discount
Rate of Discount = Discount
List Price x 100
Formula in getting the net
invoice price:
Net Invoice Price
= List Price - Discount
 Example:
1. Anthony bought one sack of
rice with a list price of P1, 600.00
subject to a 5% discount.
How much is the discount? How
much is the net invoice price?
 GIVEN
List Price = P1, 600.00
Discount Rate = 5%
FIND:
a. Discount
b. Net Price
Step 1: Find the discount
Discount = List Price x 5%
= 1,600.00 x 5%
= 80.00
Step 2: Find the Net
Invoice Price
NP= List Price-Discount
= 1,600.00-80.00
= 1,520.00
Example:
2. What is the net price of a
compressor nebulizer with a
list price of P 1,050.00
subject to 15% discount?
Given:
List Price = ₱1,050.00
Discount Rate = 15%
Find:
a. Discount
b. Net Price
Solutions:
Discount =
List Price X Discount Rate
= ₱1,050.00 X 15%
= ₱157.50
Net Price =
List Price – Discount
= ₱1,050.00 - ₱157.50
= ₱892.50
Net Price =
List Price – Discount
= ₱1,050.00 - ₱157.50
= ₱892.50
BUT WAIT, THERES MORE!

In certain instances, a seller


grants additional discounts
other than the single
discount.
We call it..

DISCOUNT SERIES
- two or more discounts
are given by the seller to
the buyer.
How to compute Series of
Discounts?
1.Multiply the list price by the first discount rate.
2.The next discount rate is then applied on the
difference between the list price and the first
discount to get the second discount.
3.Then, we deduct the second discount from the said
difference.
4.We continue with the same process depending on
the number of discounts in the series.
Example:
How much is the discount and
the net price of a cellular
phone listed at
₱5,720.00 if given a 20% and
5% discount?
Given:
List Price = ₱5,720.00
Discount Rates = 20% and 5%
Find:
a. Discount
b. Net Price
List Price = 5,720.00
Less 20% (₱5,720 X 20%)= 1,144.00
Difference = 4,576.00
Less 5% (₱4,576 X 5%) = 228.80
Net Price = 4,347.20
Total discount
= ₱1,144 + ₱228.80
= ₱1,372.80
ANY QUESTIONS?
ACTIVITY
TIME!
ACTIVITY: Show your solution
1. A GoPro camera is listed at
₱13 651.00 less 15% and 4%.
Find:
A.Net invoice Price
B.Discount
ACTIVITY: Show your solution
2. A living room set worth ₱5,
250.00 was granted a discount
of ₱345.00.
Find:
A. Discount Rate
B. Net Invoice Price
ACTIVITY: Show your solution
3. TLC Corporation sells
educational supplies. A
particular set of books listed at
₱15 050.00 was given a 15%,
6%, and 3% series discount.
Find: Net Invoice Price
ANY QUESTIONS?
Thank you!! and
keep this words
with you…
“Practice isn’t the thing
you do that makes you
do once you’re good. It’s
the thing you do that
makes you good.”
- Malcolm Gladwell 

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