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Calculate The rate of discount for a book listed at 3000 less discount at 210 The rate of discount for a bucket listed at 875 whose net price is 755 The annual rate of interest for a deposit of 50000 to earn 7500 in simple interest if the money is to be left on deposit for 2.5 years Average annual cost of discount to XYZ company which offers normal credit terms at 60 days with a discount of 20% with 10 days of invoice to it's customer s?
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Calculate The rate of discount for a book listed at 3000 less discount...
Rate of Discount Calculation


  • Book listed price: 3000

  • Discount: 210

  • Rate of Discount = (Discount/ List price) * 100

  • Rate of Discount = (210/3000) * 100 = 7%



Net Price Calculation


  • Bucket listed price: 875

  • Discount: 120 (875-755)

  • Rate of Discount = (Discount/ List price) * 100

  • Rate of Discount = (120/875) * 100 = 13.71%



Simple Interest Calculation


  • Principal Amount: 50000

  • Interest Earned: 7500

  • Time: 2.5 years

  • Simple Interest = (Principal * Rate * Time) / 100

  • 7500 = (50000 * Rate * 2.5) / 100

  • Rate = (7500 * 100) / (50000 * 2.5) = 6%



Average Annual Cost of Discount Calculation


  • Normal Credit Terms: 60 days

  • Discount Offered: 20%

  • Discount Period: 10 days

  • Effective Interest Rate = (Discount % / (100 - Discount %)) * (365 / (Credit period - Discount period))

  • Effective Interest Rate = (20 / (100 - 20)) * (365 / (60 - 10)) = 12.65%

  • Average Annual Cost of Discount = (Effective Interest Rate * Discount %) / 100

  • Average Annual Cost of Discount = (12.65 * 20) / 100 = 2.53%



Explanation:
- The rate of discount is the percentage of the discount on the listed price of the product. It helps in determining the actual cost of the product after the discount is applied.
- Net price is the actual price paid by the customer after deducting the discount from the listed price of the product.
- Simple Interest is the interest calculated on the initial amount for a specified time period at a fixed rate. It helps in determining the interest earned on a deposit.
- Average Annual Cost of Discount is the cost incurred by the company for offering discounts to its customers. It helps in determining the profitability of the business.
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Calculate The rate of discount for a book listed at 3000 less discount at 210 The rate of discount for a bucket listed at 875 whose net price is 755 The annual rate of interest for a deposit of 50000 to earn 7500 in simple interest if the money is to be left on deposit for 2.5 years Average annual cost of discount to XYZ company which offers normal credit terms at 60 days with a discount of 20% with 10 days of invoice to it's customer s?
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