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Calculating Discounts and Trade Terms Quiz

#1

What is the formula to calculate the discount amount?

Discount = List Price × (1 - Discount Rate)
Explanation

Calculate discount by subtracting the discounted price from the original price.

#2

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

$65
Explanation

Subtract the discount from the original price to get the final selling price.

#3

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

$480
Explanation

Discount is subtracted from the original price to get the discounted price.

#4

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?

$185
Explanation

Discount is subtracted from the original price to get the discounted price.

#5

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

$72
Explanation

Net price is the list price minus the trade discount.

#6

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

$45
Explanation

Subtract the discount from the original price to get the final selling price.

#7

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

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

Offers a 2% discount if payment is made within 10 days, otherwise full payment is due within 30 days.

#8

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

10%
Explanation

The trade discount is the difference between the list price and the net price, expressed as a percentage of the list price.

#9

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

$150
Explanation

Trade discount is the difference between the list price and the net price.

#10

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

$240
Explanation

Markup is added to the cost price to get the selling price.

#11

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

$960
Explanation

Net price is the list price minus the trade discount.

#12

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

10%
Explanation

Trade discount rate is the difference between the list price and the net price, expressed as a percentage of the list price.

#13

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

25%
Explanation

Markup percentage is the difference between the selling price and the cost price, expressed as a percentage of the cost price.

#14

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

$960
Explanation

Original price can be calculated by dividing the net price by (1 - discount percentage).

#15

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

$1250
Explanation

Cost price is calculated by dividing the selling price by (1 + markup percentage).

#16

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

20%
Explanation

Discount rate is the difference between the list price and the net price, expressed as a percentage of the list price.

#17

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

20%
Explanation

Discount rate is the difference between the list price and the net price, expressed as a percentage of the list price.

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