Question

a supplier offers a series discount of 6/20. find the net cost equivalent and the single discount equivalent.

the net cost equivalent is
(round to four decimal places as needed.)

the single discount equivalent is %.
(round to two decimal places as needed.)

Explanation:

Step1: Understand series discount

A series discount of 6/20 means first a 6% discount, then a 20% discount on the remaining amount. To find the net cost equivalent, we calculate the product of (1 - discount rate1) and (1 - discount rate2).
So, for 6% discount, the remaining factor is $1 - 0.06 = 0.94$. For 20% discount, the remaining factor is $1 - 0.20 = 0.80$.
The net cost equivalent is $0.94\times0.80$.

Step2: Calculate net cost equivalent

$0.94\times0.80 = 0.7520$.

Step3: Calculate single discount equivalent

The single discount equivalent is $1 -$ net cost equivalent. So, $1 - 0.7520 = 0.2480$, which is 24.80% when converted to a percentage.

Answer:

The net cost equivalent is $\boldsymbol{0.7520}$.
The single discount equivalent is $\boldsymbol{24.80}\%$.