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Answer :
Final answer:
The net price of the set of saws after applying the chain discount of 8/3/1 on the list price of $3,800 is $3,357.21.
Explanation:
The student is asking how to calculate the net price of a set of saws sold by Ryobi Limited to Ace Hardware after applying a chain discount of 8/3/1 on the list price of $3,800. A chain discount is a series of discounts applied one after the other on the remaining balance.
To calculate the net price, we start with the list price and apply the first discount of 8%. Then, we apply a second discount of 3% to the new subtotal. Finally, we take the remaining amount and apply a third discount of 1%. The resulting amount is the net price that Ace Hardware would pay for the saws.
Calculation:
- List price: $3,800
- First discount (8%): $3,800 * 0.08 = $304
- Subtotal after first discount: $3,800 - $304 = $3,496
- Second discount (3%): $3,496 * 0.03 = $104.88
- Subtotal after second discount: $3,496 - $104.88 = $3,391.12
- Third discount (1%): $3,391.12 * 0.01 = $33.91
- Net price: $3,391.12 - $33.91 = $3,357.21
Therefore, the net price that Ace Hardware will pay for the set of saws is $3,357.21.
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