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Why can't you add the trade discounts together when calculating the net price?
Apart from the fact that often you cannot use multiple discounts at the same time, they are defined multiplicatively, not additively. A 20% discount means that the price is reduced by 20% to 80% of its full price. A 20% discount on top of a 20% discount is 80% of 80% which is 0.8*0.8 of the full price which is 64%.
If a toy store offers an additional 25 percent discount on board games that have already been reduced by 30 percent will the final cost be the same as a discount of 55 percent on the original price?
no because you don't add the percents together
Purchase discounts is the same as trade discounts true or false?
false
Is taking a 40 percent discount the same as taking 20 percent off a price that was already reduced by 20 percent?
No because after you would take 20% of you have a lower number so the next 20% would be lower too. But if you took 40% off the original number would be bigger so the discount would be bigger.
A 5 percent discount of an item and subsequent 3 percent discount is the same overall 8 percent discount?
Not necessarily. It depends on whether the 3% is based on the already discounted price or the original full price: eg original price 100, less 5% = 95. Taking 3% off this is a further 2.85 giving a new nett of 92.15. A straight 8% would leave 92 exactly...
