Question

a supplier offers a series discount of 20/10/10/20. find the net cost equivalent and the single discount equivalent.
the net cost equivalent is
(round to four decimal places as needed.)

Explanation:

Step1: Convert discounts to decimals

A 20% discount means we pay \(1 - 0.20 = 0.80\), a 10% discount means we pay \(1 - 0.10 = 0.90\), and another 10% discount means we pay \(0.90\) again, and a 20% discount means we pay \(0.80\) again.

Step2: Multiply the payment factors

To find the net cost equivalent, we multiply these payment factors together: \(0.80\times0.90\times0.90\times0.80\)
First, \(0.80\times0.90 = 0.72\)
Then, \(0.72\times0.90 = 0.648\)
Then, \(0.648\times0.80 = 0.5184\)

Answer:

The net cost equivalent is \(0.5184\)