a) Let the net price be represented by N, the original list price by L, the first rate of discount by d1, the second rate of discount by d2, the third rate of discount by d3
N=L(1−d1)(1−d2)(1−d3)
N=$786.20(1−0.36)(1−0.10)(1−0.02)
=$443.79 The net price is $443.79.
b)
Amount of discount=L−N
=$786.20−$443.79=$342.41 The total amount of discount allowed is $342.41.
c)
Single equivalent rate of discount
=1−(1−d1)(1−d2)(1−d3)
=1−(1−0.36)(1−0.10)(1−0.02)
=0.43552 The exact single rate of discount that was allowed is 43.552%.
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