DISCOUNTS

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• ​Trade Discount

• ​Cash Discount

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​Find the net price of a tablet that is listed at ₱ 10,999 and has trade discount rate of 15%.

​ Trade Discount = List Price × Trade Discount Rate

       = ₱10,999 × 0.15

       =₱1,649.85

Net Price  = List Price  - Trade Discount

  = ₱10,999 - ₱1,649.85

  = ₱9,349.15

​Braniac Enterprisers received an invoice of ₱7,500 for school supplies dated 4 July with terms 10/15, n/30. If the invoice is paid on 15 July, how much cash discount did Braniac Enterprisers, receive from the supplier? How much should Braniac Enterprisers pay? A discount of 10% will be given since the invoice was paid within 15 days.

​Cash Discount = Invoice Price × Cash Discount Rate

     = ₱7,500 × 0.10

     = ₱750

Payment  = Invoice Price – Cash Discount

  = ₱7,500 - ₱750

  = ₱6,750