McClan Paving buys asphalt with a list price of $17,000. If the supplier extends trade discounts of 42/22/11, find the net price using the complement method.

The answer is $6844.8

Explanation:

Solution

Given that:

Price list = $17,000

Supplier extends trade discounts of = 42/22/11

The next step is to find the net price by making use of the complement method given below:

In complement method, we multiply the list price by (1-d/100)

where d is = the discount

Thus

The net price = (1-0.11) (1-0.22) (1-0. 42) * 17000

The net price = (0.89) (0.78) (0.58) * 17000

= $6844.8

Hence the net price is $6844.8