Trade Discounts

-discount given to attract customer to buy products.

NP-net price

L- list price

r%-trade discount

Formula for calculating NP: NP=L(1-r)

on weekend,since we are so bored we decided to go to sunway carnival shopping mall.Woa...I found out that there are so many things that I want to buy especially the cutest shoes there!so,we went to one of the shop there.There are 20% discount for one pair of shoes.The list price of the shoes RM 39.90 so without hesitating I quickly applied what I have learn..

NP=L(1-r)

=39.90(1-20%)

=RM 31.92