What is the list price of a stove if the net price is $900 and the trade discount rate is 40%?

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To find the list price of the stove when the net price is $900 and the trade discount rate is 40%, we can use the following formula:

List Price = Net Price / (1 – Trade Discount Rate)

In this case, the trade discount rate is expressed as a decimal:

  • Trade Discount Rate = 40% = 0.40

Now we substitute the values into the formula:

  • Net Price = $900
  • Trade Discount Rate = 0.40

So, we calculate:

  • List Price = $900 / (1 – 0.40)
  • List Price = $900 / 0.60
  • List Price = $1500

Therefore, the list price of the stove is $1500.

To summarize, if the net price of the stove is $900 and there is a trade discount rate of 40%, the corresponding list price amounts to $1500. This calculation is essential for retailers and consumers to understand the pricing structure associated with products.

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