Calculating Discounts and Trade Terms Quiz

Test your knowledge with these discount calculation questions covering trade terms, markup, and selling prices.

Practice Learn Test

What is the formula to calculate the discount amount?

Discount = List Price - Selling Price

Discount = List Price × (1 - Discount Rate)

Discount = Selling Price / List Price

Discount = List Price × (1 + Discount Rate)

If an item originally costs $80 and is discounted by 25%, what is the final selling price?

$65

$75

$60

$20

A store offers a 20% discount on all items. If a customer buys a $500 item, how much will they pay after the discount?

$400

$420

$480

$450

If a store offers a 15% discount on all items and a customer buys a $200 item, how much will they pay after the discount?

$170

$185

$195

$150

A product is listed at $80 with a trade discount of 10%. What is the net price?

$72

$78

$88

$90

If an item originally costs $50 and is discounted by 20%, what is the final selling price?

$45

$40

$35

$30

What does '2/10, net 30' mean in terms of trade discounts?

A 10% discount is offered if payment is made within 2 days, otherwise, the full amount is due within 30 days.

A 2% discount is offered if payment is made within 10 days, otherwise, the full amount is due within 30 days.

A 10% discount is offered if payment is made within 30 days, otherwise, the full amount is due within 2 days.

A 30% discount is offered if payment is made within 10 days, otherwise, the full amount is due within 2 days.

What is the trade discount rate if a $500 item is sold at a net price of $425?

15%

10%

20%

What is the trade discount if a $1000 item is sold at a net price of $850?

$150

$200

$250

$100

#10

If a $200 item is marked up by 40%, what is the selling price?

$240

$160

$280

$220

#11

What is the net price of an item that has a list price of $1200 and a trade discount of 20%?

$960

$1000

$1040

$1100

#12

What is the trade discount rate if a $300 item is sold at a net price of $255?

15%

10%

20%

#13

A retailer purchased goods for $400 and sold them for $500. What is the markup percentage?

25%

20%

30%

50%

#14

If an item is sold at a net price of $720 after a 25% discount, what was its original price?

$960

$800

$600

$540

#15

If an item is sold for $1500 with a markup of 20%, what is the cost price?

$1250

$1200

$1300

$1400

#16

What is the discount rate if a $120 item is sold at a net price of $90?

25%

20%

15%

10%

#17

What is the discount rate if a $200 item is sold at a net price of $160?

20%

25%

15%

10%