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Discount Calculation

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Discount Calculation


1. **Problem statement:** Calculate the net price after trade and functional discounts, the final amount after cash discount, total discount value, and amount payable if cash discount is lost. 2. **Given:** List price $=120000$ 3. **Discounts:** - Trade discount $=20\%$ - Functional discount $=5\%$ on balance after trade discount - Cash discount $=4\%$ if paid within 15 days 4. **Step 1: Calculate net price after trade and functional discounts** - Trade discount amount $=120000 \times 0.20 = 24000$ - Price after trade discount $=120000 - 24000 = 96000$ - Functional discount amount $=96000 \times 0.05 = 4800$ - Net price after trade and functional discounts $=96000 - 4800 = 91200$ 5. **Step 2: Calculate final amount payable after cash discount** - Cash discount amount $=91200 \times 0.04 = 3648$ - Final amount payable $=91200 - 3648 = 87552$ 6. **Step 3: Calculate total dollar value of discounts** - Total discounts $=24000 + 4800 + 3648 = 32448$ 7. **Step 4: Amount payable if cash discount is lost (payment after 15 days)** - Amount payable without cash discount $=91200$ **Final answers:** - Net price after trade and functional discounts: $91200$ - Final amount payable after cash discount: $87552$ - Total discount value: $32448$ - Amount payable if cash discount lost: $91200$