Three trade discount rates of 5% each are offered on an airplane ticket that is listed at $1200.

a. What is the net price of the ticket?

b. What is the amount of discount offered?

Use formulas:

Amount of Trade Discount= d x L

Net Price: N=L(1-d)

Net Price After a Series of Trade Discounts: N=L(1-d1)(1-d2)(1-d3)...(1-dn)

Single Equivalent Trade Discount Rate: de=1-((1-d1)(1-d2)(1-d3)...(1-dn))

Trade discount rate: d= amount of trade discount (dxL)/ List Price (L)