Computing Trade Discount


The list price, or catalog price of an item, is the price for which an item is sold. An item is purchased at a trade discount, which is a discount off the list price. The trade discount rate is the amount of the discount expressed as a percentage. The net price is the price that is paid for the item.


Zoho Appliances is purchasing a freezer engine for a super freezer. The list price of the engine is $399. Zoho Appliances receives a 25 percent trade discount from the wholesaler. What is the net price of the engine?

The answer is as follows:
  1. Find the trade discount. Trade Discount = List Price × Trade-Discount Rate = $399 × 25% = $99.75
  2. Find the net price. Net Price = List Price − Trade Discount = $399 - $99.75 = $299.25

Practice: Find the trade discount and list of price of the below examples.

Trade Discount and Net Price
List Price Trade Discount Price Trade Discount List Price
$350.00 25% ??? ???
$450.00 20% ??? ???
$650.00 20% ??? ???

For more details, please contact me here.
Date of last modification: March 5, 2019