Answers and Step-by-step explanation:
Trade Discount = List prices x Trade discount rate,
For 40% Trade discount rate,
TRADE DISCOUNT =
7000 x 40% = $2,800
For 20% Trade discount rate,
Net amount = 7000 - 2800 = 4200
TRADE DISCOUNT =
4200 x 20% = $840
For 15% Trade discount rate,
Net amount = 4200 - 840 = 3360
TRADE DISCOUNT =
3360 x 15% = $504
Therefore, the Trade Discount amounts are: $2,800, $840 and $504 for 40/20/15 rates respectively.
