Trade Discount and

Discount Series
Business Mathematics
 OBJECTIVES
At the end of this lesson, you will be able to solve
problems involving trade discount and discount series
SIMPLE DISCOUNT
Simple discount is an amount or percentage that is
deducted from the selling price of a product. Retailers
offers discount as means of encouraging customers to
return to their store or purchase their products often.
Discounts make take as a form of percentage.
TRADE DISCOUNT
Trade Discount is a percentage from the list price of a
product that a manufacturer gives to resellers when they
buy his or her product. When the reseller pays for the
product, he or she does not par the list price.
TRADE DISCOUNT
D= Trade discount
d= Discount Rate
L= List price
D
d L
 EXAMPLE EXAMPLE 1
An item listed for 450 dollars with an 11% trade discount. What is the amount
of trade discount

Given Solution
L= 450 𝐷=𝑑 × 𝐿
d= 11% 𝐷 =0.11 × 450
𝐷 = 49.5
D
d L
 EXAMPLE EXAMPLE 1
Alex purchases 8 pairs of denim jeans at a discount of 25%, which are listed at
a price of Php 1,200 per piece. How much does each denim jeans cost?

Solution
Given 𝐷=𝑑 × 𝐿
L= 1200 𝐷 =0.25 × 1200
d= 25% 𝐷 =300
𝐷𝑒𝑛𝑖𝑚 𝑝𝑟𝑖𝑐𝑒=1200 −300
𝐷𝑒𝑛𝑖𝑚 𝑝𝑟𝑖𝑐𝑒=900
 EXAMPLE EXAMPLE 1
Determine the list price of an item if a 15% discount on the item amounts to
22.50 dollars

Given Solution
D= 22.50 𝐷
𝐿=
d= 15% 𝑑
22.50
𝐿=
D 0.15
𝐿=150 𝑑𝑜𝑙𝑙𝑎𝑟𝑠
d L
 EXAMPLE EXAMPLE 2
Dominic saved a total of Php 1,200 after a 15% discount was given to all
purchases, how much was her total purchase before
the discount?

Given Solution
D= 1 200 𝐷
𝐿=
d= 15% 𝑑
1200
𝐿=
0.15
𝐿= 8 , 000
DISCOUNT SERIES
A Discount Series is where several discounts are given to
one product. Each percentage depends on conditions that
must be satisfied for the discounts to be applied.
 EXAMPLE EXAMPLE 3
An appliance store offers a refrigerator at Php 14, 000 with a discount of 25%.
To attract further buyers, the same refrigerator was given a 15% discount. How
much does the refrigerator costs?

Given Solution
L= 14 000 𝐷 1 =𝑑 × 𝐿 𝐷 2 = 𝑑 × 𝐿
d1= 25% 𝐷1 =14 000 × 0.25 𝐷 2=0.15 × 10 500
d2= 15% 𝐷 1 =3500 𝐷 =1 575
2
𝐷 𝑖𝑠𝑐𝑜𝑢𝑛𝑡 𝑝𝑟𝑖𝑐𝑒 =𝐿− 𝐷
𝐷 𝑖𝑠𝑐𝑜𝑢𝑛𝑡 𝑝𝑟𝑖𝑐𝑒 =1400 −3500 𝐷 𝑃=10500 − 1575
𝐷 𝑖𝑠𝑐𝑜𝑢𝑛𝑡 𝑝𝑟𝑖𝑐𝑒 =10 500 Therefore the ref costs
SINGLE DISCOUNT RATE
Single Discount Rate is equivalent to a discount series.
This means that a percentage is equivalent to several
discounts. With the previous example, let’s compute for
its single discount rate.
 EXAMPLE EXAMPLE 4
An appliance store offers a refrigerator at Php 14, 000 with a discount of 25%.
To attract further buyers, the same refrigerator was given a 15% discount. How
much does the refrigerator costs?
Discount Complement Decimal
rate value 𝐷𝑃 = 𝐿𝑖𝑠𝑡 𝑝𝑟𝑖𝑐𝑒 × 𝑅𝑎𝑡𝑒
𝐷𝑃 =14 000 × 0.6375
25% 75% 0.75
𝐷𝑃 = 8 925
15% 85% 0.85
Therefore, the ref costs
0 .6375
3.6 Formative Assessment
Apply what you ha
ve
learned!
 MODULE 3: 3.6 Formative Assessment
Michael went to a shoe shop and bought a pair of socks worth 230 with a discount of 33%. How
1
much did he pay?
 MODULE 3: 3.6 Formative Assessment
Sofia bought a phone with the discounted price of 8,340 from the rate of 22%. What is the
2
original price of the phone?
 MODULE 3: 3.6 Formative Assessment
Which of the following has greater discount for an item worth Php 2, 500: 19% and 11%, 20%
3
and 10%, or 23% and 6%?
 MODULE 3: 3.6 Formative Assessment
Nikko bought 3 hats and each hat is worth Php 123 and the wholesaler gave him a 17% discount.
4
What is the trade discount?
 MODULE 3: 3.6 Formative Assessment
5 What is the single discount rate of 16.5% and 73%?
 MODULE 3: 3.6 Formative Assessment
Regina George bought 2 skirts worth Php 75 each and 3 lipsticks worth Php 199 each. If the
6
store offers 16% and 13% discount to the total purchase. How much did she pay?
 MODULE 3: 3.6 Formative Assessment
Andee bought a car worth Php 720, 000 which listed with 42%, 15%, and 10% discount. What is
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the total amount of the trade discount?
 MODULE 3: 3.6 Formative Assessment
The list price of a blouse is Php 300. How much should be paid if the seller offers a 10%
8
discount?
 MODULE 3: 3.6 Formative Assessment
The price of a laptop after discount is Php 36,000. If the discount rate was 25%, how much was
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the original price?
 MODULE 3: 3.6 Formative Assessment
Migs and Marvin bought the same powerbank from different stores. Migs paid Php 800 while
10
Marvin paid Php 760. What discount rate was given to Marvin?
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