Khim Carmela L.

Magbanua

ABM 11-A

BUSINESS MATH

ACTIVITY # 3 Total : 15 points.

Finding the List Price given the Net Price and series of discounts. Test Yourself :

1. A computer shop bought lap top computers after a discount of 15%, 10% and 5%. The shop sells
laptop at 27,500 Php each. What is the list price? (3 points.)

Use formula N = L x (1 - d1) (1- d2) (1- d3 )..

Solution: N = L x (1 - d1) (1- d2) (1- d3 )

27,500 x (1-0.15) (1-0.10) (1-0.05)

27,500x0.85x0.90x0.95 = 19, 985.625

2. A bike shop sells mountain bikes to consumers at 22,500 Php each and offers a discount series of 45%,
34% and 15%. ( 9 points)

Find:

a. net price = L x (1 - d1) (1- d2) (1- d3 )

22,500 x (1-0.45) (1-0.34) (1-0.15)
22,500 x 0.55 x0.66 x 0.85 = 6, 942.375
b. Single equivalent rate of discount = D = 1- [ ( 1- d1) ( 1-d2) ...( 1-dn) ]

= 1- [ ( 1- 0.45) ( 1-0.34) ( 1-0.15) ]

= 1- [ (0.55) (0.66) (0.85) ]

= 0.69145 x 100%

= 69.145 %

amount of discount = A = L - A = 22,500 - 6, 942.375

= 15, 557.625
A = D x L = 0.69145 x 22,500 = 15,557.625

3. Show how single equivalent discount rate is obtained from a series of discount . ( 3 points)

Note : Provide a sample problem related to the question asked.

5% 10% & 15%

D= 1- [ (1-0.05) (1-0.10) (1-0.15)

= 1- [ (0.95) (0.90) (0.85) ]

= 1- 0.72675

=0.27325

=27.325%