Copyright © 2015, 2011, and 2007 Pearson Education, Inc. 1 Chapter 7 Mathematics of Buying Section 2 Series Discounts and Single Discount Equivalents

Copyright © 2015, 2011, and 2007 Pearson Education, Inc. 2 Express a Series Discount as an Equivalent Single Discount Series or chain discounts often expressed as a single discount Single discount equivalent: subtract the net cost equivalent from 1 Write it as a percent

Copyright © 2015, 2011, and 2007 Pearson Education, Inc. 3 Finding the Single Discount Equivalent Single discount equivalent = 1 – Net cost Equivalent

Copyright © 2015, 2011, and 2007 Pearson Education, Inc. 4 Example If Culligan Water Systems offered a 20/10 discount to wholesale accounts on all water softeners, what was the single discount equivalent? series discount: 20 / ×.9 =.72 net cost equivalent 1.00 –.72 =.28 The single discount equivalent of a 20/10 series discount is 28%.

Copyright © 2015, 2011, and 2007 Pearson Education, Inc. 5 Find the List Price Given the Series Discount and the Net Cost Sometimes the net cost after trade discounts is given, along with the series discount, and the list price must be found.

Copyright © 2015, 2011, and 2007 Pearson Education, Inc. 6 Example Find the list price of a Culligan that has a net cost of $495 after trade discounts of 30/20.

Copyright © 2015, 2011, and 2007 Pearson Education, Inc. 7 Example Use a net cost equivalent. Find the percent paid, using complements. 30 / 20.7 ×.8 =.56 R × B = P 56% of list price = $495 B = P/R = 495/.56 = $ The list price of the sink is $

Copyright © 2015, 2011, and 2007 Pearson Education, Inc. 8 Example Find the list price of a Kitchen Aid mixer having a series discount of 10/30/20 and a net cost of $ Use complements to find the percent paid. 20/ 30 / 10.8×.7 ×.9 =.504 B = P / R = /.504 = $ The list price of the Kitchen Aid mixer is $