Determining Final Net Price after Chain of Discounts
Introduction
A chain discount is a series of trade discounts.
Here, discounts do not add up to get the chain discount.
Each discount needs to be calculated individually on the new net price from the previous discount.
Example: Find the final net price
Zoho Appliances has a super freezer in stock it wants to clear out. The super freezer originally sold for
$1,185. Zoho Appliances is offering a discount of 25 percent less 15 percent, also written as 25/15.
What is the final net price of the super freezer?
- Find the first discount. Answer: $1,185 × 25% = $296.25
- Find the first net price. Answer: $1,185 - $296.25 = 888.75
- Find the second discount. Answer: $888.75 × 15% = $133.31
- Find the final net price. Answer: $888.75 - $133.31 = $755.44
Practice: Find the first discount, the first net price, the second discount, and the final net price.
Final Net Price
| List Price | Chain Discount | First Discount | First Net Price | Second Discount | Final Net Price |
| $950.00 | 25% less 20% | ??? | ??? | ??? | ??? |
| $1375.00 | 35% less 10% | ??? | ??? | ??? | ??? |
| $1975.00 | 15% less 10% | ??? | ??? | ??? | ??? |
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Date of last modification: March 5, 2019