One manufacture needs to calculate the net price of an order with a list price of $600 and a trade discount of 11 / 8 / 4. Use the net decimal equivalent to find net price.

  1. To calculate the effective rate of a loan, we can use the formula: Effective rate = (1 + (nominal rate / number of compounding periods per year))^(number of compounding periods per year * number of years) – 1

The nominal rate in this instance is 4%. There are 4 compounding periods each year (quarterly), 5 years.

Effective rate = (1 + (0.04 / 4))^(4 * 5) – 1 Effective rate = (1.01)^20 – 1 Effective rate = 4.95%

Thus, the effective rate on the loan is 4.955%

  1. We need the net decimal equivalent trade discount to determine the order’s net price. After the trade discount, the net decimal equivalent refers to the remaining percentage of the price list.

The net decimal equivalent of 11% is 1 – 0.11 = 0.89, the net decimal equivalent of 8% is 1 – 0.08 = 0.92, the net decimal equivalent of 4% is 1- 0.04 = 0.96

So, the net price of the order would be $600 * 0.89 = $534

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