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Chain Discounts— Complement Method

SECTION 15-5. pp. 498-501. Chain Discounts— Complement Method. Compute: final net price using the complement method. Section Objective. Key Words to Know. net-price rate (p. 498) The percent of the price paid for an item, found by multiplying the complements of the chain discounts.

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Chain Discounts— Complement Method

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  1. SECTION 15-5 pp. 498-501 Chain Discounts— Complement Method

  2. Compute: final net price using the complement method Section Objective

  3. Key Words to Know net-price rate (p. 498) The percent of the price paid for an item, found by multiplying the complements of the chain discounts.

  4. Formula Net Price Rate = Product of Complements of Chain-Discount Rates Net Price = List Price × Net-Price Rate

  5. Restoring Vintage Vehicles p. 498 How do you find the final net price using the complement method?

  6. Example 1 Dell’s manufactures a riding mower, which is priced at $1,450. A new model is ready for production, so the model will be discontinued. Dell’s is offering a chain discount of 25 percent less 20 percent less 10 percent. What is the net price for the mower?

  7. Example 1 Answer: Step 1 Find the complements. Complement of 25 percent: 100% – 25% = 75% Complement of 20 percent: 100% – 20% = 80% Complement of 10 percent: 100% – 10% = 90%

  8. Example 1 Answer: Step 2 Find the net-price rate. Product of Complements of Chain-Discount Rates 75% × 80% × 90%= 54%

  9. Example 1 Answer: Step 3 Find the net price. List Price ×Net-Price Rate $1,450 ×54% = $783

  10. Key Words to Know single equivalent discount (SED) (p. 499) One discount that is equal to a chain discount.

  11. Formula SED = Complement of Net-Price Rate Discount = List Price × SED

  12. Example 2 In Example 1 the chain discount complements were 75 percent/80 percent/90 percent and the net-price rate was 54 percent. What is the SED? What is the discount?

  13. Example 2 Answer: Step 1 Find the SED. Complement of the Net-Price Rate 100% – 54% = 46% (Note that 54% paid implies 46% off.)

  14. Example 2 Answer: Step 2 Find the discount. List Price × SED $1,450 × 46% = $667

  15. Example 2 Answer: Step 3 Check: List Price – Discount = Net Price $1,450 – $667 = $783 (same as Example 1)

  16. Practice 1 Find the SED and the discount. List price: $398.55 Chain discount: 40/25/15

  17. Practice 1 Answer SED: 61.75% Discount: $246.10

  18. END OF SECTION 15-5 Chain Discounts— Complement Method

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