A wholesaler allows a trade discount of 10% off the list price of KSh 10,000 and a further 5% discount for bulk purchases applied to the reduced price. What is the net price?
Answer and explanation
Correct answer: C. KSh 8,550
- Step 1: After the first discount: 10,000 x 0.9 = 9,000. Step 2. After the second discount: 9,000 x 0.95 = KSh 8,550. Answer: KSh 8,550. Why not the others: KSh 8,500: That adds the two discounts and takes them off together. KSh 9,000: That applies only the first discount. KSh 9,500: That applies only the second discount.
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