280. Problem: Goods that cost $414 are sold for $492.66. What per cent is gained? $492.66 414. $ 78.66 19 414)78 66 41 4 37 26 If the goods cost $414 and sell for $492.66, the difference, $78.66, must be gain or profit. The problem then is: $78.66 is what per cent of $414, the cost? This can be ascertained as explained in par. 262. Ans. 19%. NOTE. For practice problems in finding the per cent of gain or loss see par. 39. For general problems in profit and loss see par. 40. DISCOUNT 281. A Discount is an amount deducted from a sum owed by one person to another. In measuring discounts the principles of percentage are used. There are two kinds of discount, trade discount and time discount. 282. Trade Discount is the discount allowed by a manufacturer or jobber to a retail dealer. 283. Time Discount is a discount allowed as a consideration for paying an amount during a certain time. TRADE DISCOUNT 284. Manufacturers, wholesalers, and others doing business of a similar nature, and handling goods the value of which is likely to fluctuate from time to time, have a fixed list price for their goods. These list prices remain fixed, and fluctuations in market rates are met by allowing different discounts from time to time; that is, if the value drops, the discount is made larger, and if the price of the goods rises, the discount is made smaller. 285. The List Price of goods is the price at which they are listed in the catalogue and from which discounts are allowed. Goods are always billed at the list price and then the discount is deducted from the total. 286. The Gross Amount of the bill is the total amount before any discounts have been deducted. 287. The Net Amount is the amount to be paid after all discounts have been deducted. 288. The Discount is the sum deducted from the gross amount. 289. A Discount Series is several discounts deducted one after another; as, 25%, 10%, and 5%. The first discount is deducted from the gross amount; the second from the remainder, and so on; the final remainder being the net amount. 290. The principles of percentage are used in performing all operations in discount. Problem: Goods listed at $420.34 are sold at a discount of 28%. What is the discount and what is The net amount of the bill? 292. Problem: A certain line of goods is sold at a discount of 25%, 20%, 10%, and 5%. What would be the net amount of a bill of $1214.43, purchased under these terms? What would the discount amount to? This problem involves a discount series. The first discount is deducted from the gross amount. Twenty-five per cent of $1214.43 is $303.61; deducted from the gross amount leaves $910.82. Twenty per cent of this, found in the easiest way, is $182.16; deducted, leaves $728.66. Proceeding in the same way, deducting 10% and then 5%, the net amount of the bill is $623.01. If the net amount of the bill is $623.01 and the gross amount is $1214.43, the difference must be the discount, $591.42. NOTE. For practice problems in finding the net amount see par. 41. $340 .336)114.240 100 8 13 44 13 44 Ans. $340. NOTE. For practice problems in finding the gross amount or the list price see par. 43. 297. To Find the Rate of Discount: ILLUSTRATED SOLUTIONS Problem: The gross amount of a bill of goods is $346.40. The net amount is $259.80. What is the rate of discount? $346.40 259.80 $86.60 25 346.40)86.60 00 69 28 0 17 32 00 17 32 00 The difference between the gross amount and the net amount equals the discount, which is $86.60. The problem then is: $86.60 is what per cent of $346.40? This is found to be 25% (par. 262). NOTE. For practice problems in finding the rate of discount see par. 44. |