Calculating Net Price with Trade Discount

This question asks us to find the final price Rahul has to pay for a box of pens after a discount is applied. We are given the listed price and the trade discount rate.

Understanding the Terms

• Listed Price: This is the price of an item shown in the catalogue or list, before any discounts are applied. In this case, it's ₹900.
• Trade Discount: This is a reduction in price given by a seller to a buyer, usually when buying in bulk or as part of a business transaction. It's calculated on the listed price. Here, the discount rate is 30%.
• Net Price: This is the final price after the trade discount has been subtracted from the listed price.

Step-by-Step Calculation

We need to calculate the amount of the trade discount first and then subtract it from the listed price to find the net price.

1. Calculate the Trade Discount Amount

The formula for the trade discount amount is:

$Trade Discount Amount = Listed Price × Discount Rate$

In this case, the Discount Rate is 30%. We express this percentage as a fraction or decimal for calculation:

$Discount Rate = \frac{30}{100} = 0.30$

Now, we apply this rate to the Listed Price of ₹900:

$Trade Discount Amount = ₹900 × \frac{30}{100}$

$Trade Discount Amount = ₹900 × 0.30$

$Trade Discount Amount = ₹270$

2. Calculate the Net Price

The formula for the Net Price is the listed price minus the discount amount:

$Net Price = Listed Price - Trade Discount Amount$

Using the values we have:

• Listed Price = ₹900
• Trade Discount Amount = ₹270

Substituting these values into the formula:

$Net Price = ₹900 - ₹270$

$Net Price = ₹630$

Conclusion

Therefore, the net price Rahul has to pay for the box of pens is ₹630.