BUSINESS MATHEMATICS

Camarines Sur National High School

 Welcome
to class!

Today's Agenda

• Trade Discount
and Discount
Series
Key Concept of
Buying and Selling
Business Math Class | CSNHS ABM
Class Objectives

Expectations and outcomes

At the end of this session, you are expected to be able to:

Trade
Define Differentiate Solve
Discounts

Business Math Class | CSNHS ABM

LESSON PROPER
•Trade Discount
and Discount
Series

Business Math Class | CSNHS ABM

 Springboard: Trade Discounts
LIST PRICE List price pertains to the actual price of an item.
TRADE Trade discounts pertains to the amount deducted from list price
DISCOUNTS granted to buyers.
NET INVOICE Net invoice price is the difference between the list price and the
PRICE discount to that list price.
NET INVOICE Net invoice price rate is net invoice price as part of the list price.
PRICE RATE
SINGLE Single trade discount is one discount applied to a list price.
DISCOUNTS
SERIES OF
Series of discounts is an application of 2 or more discounts to a list price.
DISCOUNTS Discounts can be combined to get the single equivalent discount rate.

Business Math Class | CSNHS ABM

 Computation of Trade Discounts
We let the following variable be Remember the following
formula
𝒅 = 𝒍𝒑 × 𝒅𝒓
𝒍𝒑 – list price 𝒏𝒊𝒑 = 𝒍𝒑 − 𝒅
𝒏𝒊𝒑 – net invoice price 𝒏𝒊𝒑 = 𝒍𝒑(𝟏 − 𝒅𝒓)
𝒅 – discount 𝒏𝒊𝒑
𝒅𝒓 – discount rate 𝒏𝒊𝒑𝒓 –
𝒏𝒊𝒑𝒓 – net invoice price rate 𝒍𝒑
𝒏𝒊𝒑𝒓 +𝒅𝒓 = 𝟏𝟎𝟎%

Business Math Class | CSNHS ABM

Problem 1
A laptop is priced at P25,950. If sold in full payment, the buyer will be granted
5% discount. Jenny bought the laptop and paid in full payment. How mush is
the discount and the amount she paid? What percent of the list price did she
pay?
𝒅 = 𝒍𝒑 × 𝒅𝒓 𝒅=𝒍𝒑×𝒅𝒓
𝒏𝒊𝒑 = 𝒍𝒑 − 𝒅 𝒅=25,950×5%
𝒅=1,297.50 Therefore, Jenny paid
𝒏𝒊𝒑 = 𝒍𝒑(𝟏 − 𝒅𝒓)
24,652.50 which is 95%
𝒏𝒊𝒑 = 𝒍𝒑 − 𝒅 of the list price after a
𝒍𝒑 = 𝟐𝟓, 𝟗𝟓𝟎 𝒏𝒊𝒑 = 25,950 − 1,297.50
𝒅𝒓 = 𝟓% discount of P1,297.50.
𝒏𝒊𝒑 = 24,652.50
𝒅 =?
𝒏𝒊𝒑 =? 𝑛𝑖𝑝𝑟 = 100% − 5%
𝒏𝒊𝒑𝒓 =? 𝑛𝑖𝑝𝑟 = 95%

Business Math Class | CSNHS ABM

Problem 2
A refrigerator was bought for 19,757 net of discount. The selling price was
listed at P21,475. Compute for NIP rate, discount, and discount rate.

𝒏𝒊𝒑=𝒍𝒑 − 𝒅 𝒏𝒊𝒑𝒓 = 𝟏𝟎𝟎% − 𝒅𝒓

𝒅 = 𝒍𝒑 × 𝒅𝒓 19757 = 21475 − 𝑑 𝑛𝑖𝑝𝑟 = 100% − 8%
𝒏𝒊𝒑 = 𝒍𝒑 − 𝒅 𝑑 = 21475 − 19757 𝒏𝒊𝒑𝒓 = 𝟗𝟐%
𝒏𝒊𝒑 = 𝒍𝒑(𝟏 − 𝒅𝒓) 𝒅 = 𝟏, 𝟕𝟏𝟖
Therefore, the nip rate
𝒏𝒊𝒑 = 𝟏𝟗, 𝟕𝟓𝟕 𝒅 = 𝒍𝒑 × 𝒅𝒓 was 92%, discount was
𝒍𝒑 = 𝟐𝟏, 𝟒𝟕𝟓 1718 = 21,475 × 𝑑𝑟 P1,718, and the
𝒏𝒊𝒑𝒓 =? 21475 × 𝑑𝑟 1718
= discount rate was 8%.
𝒅 =? 21475 21475
𝒅𝒓 =? 𝒅𝒓 = 𝟖%

Business Math Class | CSNHS ABM

Problem 3
A dining set worth 9,865 was granted a discount of P887.85. Find the discount
rate, net invoice price, and net invoice price rate.

𝒅 = 𝒍𝒑 × 𝒅𝒓 𝒏𝒊𝒑𝒓 = 𝟏𝟎𝟎% − 𝒅𝒓
𝒅 = 𝒍𝒑 × 𝒅𝒓
887.85 = 9865 × 𝑑𝑟 𝑛𝑖𝑝𝑟 = 100% − 9%
𝒏𝒊𝒑 = 𝒍𝒑 − 𝒅 9865 × 𝑑𝑟 887.85 𝒏𝒊𝒑𝒓 = 𝟗𝟏%
𝒏𝒊𝒑 = 𝒍𝒑(𝟏 − 𝒅𝒓) =
9865 9865
𝒅𝒓 = 𝟗%
𝒍𝒑 = 𝟗, 𝟖𝟔𝟓 Therefore, the discount
𝒅 = 𝟖𝟖𝟕. 𝟖𝟓 rate was 9%, net
𝒅𝒓 =? invoice price was
𝒏𝒊𝒑=𝒍𝒑 − 𝒅
𝒏𝒊𝒑 =? P8,977.15, and nip rate
𝑛𝑖𝑝 = 9865 − 887.85
𝒏𝒊𝒑𝒓 =? was 91%.
𝑛𝑖𝑝 = 8977.15

Business Math Class | CSNHS ABM

Problem 4
Metro Laboratory Incorporated sells laboratory equipment. A certain dialysis
machine listed at P115,500 was a 15% and 7% series discounts. Compute for
the net invoice price, total discount, single equivalent discount rate, and NIP
rate.
Single Equivalent Discount Rate (sedr) is the single equivalent of discounts in a
discount series.
𝒔𝒆𝒅𝒓 = 𝟏 − [(𝟏 − 𝒅𝒓𝟏) (𝟏 − 𝒅𝒓𝟐) 𝟏 − 𝒅𝒓𝟑 𝟏 − 𝒅𝒓𝟒 … (𝟏 − 𝒅𝒓𝒌)]

𝒏𝒊𝒑𝒓 in discount series

𝑛𝑖𝑝𝑟 = 1 − 15% 1 − 7% 𝑠𝑒𝑑𝑟 = 1 − 79.05% 𝒏𝒊𝒑 =?
𝑛𝑖𝑝𝑟 = 0.85 × 0.93 𝑠𝑒𝑑𝑟 = 20.95% 𝒅 =?
𝑛𝑖𝑝𝑟 = 79.05% 𝑙𝑝 = 115,500 𝒔𝒆𝒅𝒓, 𝒏𝒊𝒑𝒓 =?
Business Math Class | CSNHS ABM
Problem 4
Metro Laboratory Incorporated sells laboratory equipment. A certain dialysis
machine listed at P115,500 was a 15% and 7% series discounts. Compute for
the net invoice price, total discount, single equivalent discount rate, and NIP
rate.

𝒏𝒊𝒑𝒓 = 𝟏 − 𝟏𝟓% 𝟏 − 𝟕% 𝒔𝒆𝒅𝒓 = 𝟏 − 𝟕𝟗. 𝟎𝟓% 𝒏𝒊𝒑 =?

𝒏𝒊𝒑𝒓 = 𝟎. 𝟖𝟓 × 𝟎. 𝟗𝟑 𝒔𝒆𝒅𝒓 = 𝟐𝟎. 𝟗𝟓% 𝒅 =?
𝒏𝒊𝒑𝒓 = 𝟕𝟗. 𝟎𝟓% 𝒍𝒑 = 𝟏𝟏𝟓, 𝟓𝟎𝟎 𝒔𝒆𝒅𝒓, 𝒏𝒊𝒑𝒓 =?
Therefore, the net invoice
𝒅 = 𝒍𝒑 × 𝒔𝒆𝒅𝒓 price of the product is
𝒏𝒊𝒑 = 𝒍𝒑 − 𝒅 𝒏𝒊𝒑 = 𝒍𝒑 − 𝒅
𝑛𝑖𝑝 = 115500 − 24197.25P91,302.5 after a discount of
𝒅 = 𝒍𝒑 × 𝒔𝒆𝒅𝒓 𝒏𝒊𝒑 = 𝟗𝟏𝟑𝟎𝟐. 𝟕𝟓 P24,197.25. The discount
𝒅 = 𝟏𝟏𝟓𝟓𝟎𝟎 × 𝟐𝟎. 𝟗𝟓% rate is 20.95% and nip rate
𝒅 = 𝟐𝟒𝟏𝟗𝟕. 𝟐𝟓 is 79.05%.
Business Math Class | CSNHS ABM
Problem 5
City Home sells a queen-sized bed for P10,399. This is offered at a discount of
13%. Next sale season, the discount rate will be 7% and 6%. If Daniel plan to
buy it, when should he do it?

𝒏𝒊𝒑𝒓 = 𝟏 − 𝟕% 𝟏 − 𝟔% 𝒔𝒆𝒅𝒓 = 𝟏 − 𝟖𝟕. 𝟒𝟐% 𝒏𝒊𝒑 =?

𝒏𝒊𝒑𝒓 = 𝟎. 𝟗𝟑 × 𝟎. 𝟗𝟒 𝒔𝒆𝒅𝒓 = 𝟏𝟐. 𝟓𝟖% 𝒅 =?
𝒏𝒊𝒑𝒓 = 𝟖𝟕. 𝟒𝟐% 𝒍𝒑 = 𝟏𝟎, 𝟑𝟗𝟗 𝒔𝒆𝒅𝒓, 𝒏𝒊𝒑𝒓 =?
𝒏𝒊𝒑 = 𝒍𝒑 − 𝒅
𝒅 = 𝒍𝒑 × 𝒔𝒆𝒅𝒓
𝒏𝒊𝒑 = 𝟏𝟎𝟑𝟗𝟗 − 𝟏𝟑𝟎𝟖. 𝟏𝟗
𝒏𝒊𝒑 = 𝒍𝒑 − 𝒅
𝒏𝒊𝒑 = 𝟗𝟎𝟗𝟎. 𝟖𝟏 Therefore, Daniel should buy
𝒅 = 𝒍𝒑 × 𝒔𝒆𝒅r w𝒊𝒕𝒉 𝟏𝟑% 𝒅𝒊𝒔𝒄𝒐𝒖𝒏𝒕, the product before next sale
𝒅 = 𝟏𝟎𝟑𝟗𝟗 × 𝟏𝟐. 𝟓𝟖%
𝒏𝒊𝒑 = 𝒍𝒑 − 𝒅 season because then, it will
𝒏𝒊𝒑 = 𝟏𝟎𝟑𝟗𝟗 − 𝟏𝟑𝟓𝟏. 𝟖𝟕
𝒅 = 𝟏𝟑𝟎𝟖. 𝟏𝟗 = 𝟗𝟎𝟒𝟕. 𝟏𝟑
be pricier.

Business Math Class | CSNHS ABM

Problem 6.a
Choose which of the following stores offer a better price for a photocopying
machine of the same brand and model: Store Y: lp is P19,000, discount is
25%; Store Z: lp is P18,900, discounts are 20%, and 5%?

Store Y: Store Z:
𝒍𝒑 = 𝑷𝟏𝟗, 𝟎𝟎𝟎 𝒍𝒑 = 𝑷𝟏𝟖, 𝟗𝟎𝟎
𝒅𝒓 = 𝟐𝟓% 𝒏𝒊𝒑𝒓 = 𝟏 − 𝟐𝟎% 𝟏 − 𝟓% = 𝟕𝟔%
𝒔𝒆𝒅𝒓 = 𝟏 − 𝟕𝟔% = 𝟐𝟒%
𝒅 = 𝒍𝒑 × 𝒅𝒓
𝒅 = 𝟏𝟗𝟎𝟎𝟎 × 𝟐𝟓% 𝒅 = 𝒍𝒑 × 𝒔𝒆𝒅 Therefore, since the
𝒅 = 𝟒𝟕𝟓𝟎 𝒅 = 𝟏𝟖𝟗𝟎𝟎 × 𝟐𝟒% price of the same
𝒅 = 𝟒𝟓𝟑𝟔 product is lower in Store
𝒏𝒊𝒑 = 𝒍𝒑 − 𝒅 Y than Store Z, Store Y
𝒏𝒊𝒑 = 𝟏𝟗𝟎𝟎𝟎 − 𝟒𝟕𝟓𝟎 𝒏𝒊𝒑 = 𝒍𝒑 − 𝒅
𝒏𝒊𝒑 = 𝟏𝟖𝟗𝟎𝟎 − 𝟒𝟓𝟑𝟔 offers the better price.
𝒏𝒊𝒑 = 𝟏𝟒𝟐𝟓𝟎
𝒏𝒊𝒑 = 𝟏𝟒𝟑𝟔𝟒
Business Math Class | CSNHS ABM
Problem 6
Choose which of the following stores offer a better price for a photocopying
machine of the same brand and model: Store A: lp is P23,300, discount is
23%; Store B: lp is P23,000, discounts are 20%, and 5%?

Store A: Store B:
𝒍𝒑 = 𝑷𝟐𝟑, 𝟑𝟎𝟎 𝒍𝒑 = 𝑷𝟐𝟑, 𝟎𝟎𝟎
𝒅𝒓 = 𝟐𝟑% 𝒏𝒊𝒑𝒓 = 𝟏 − 𝟐𝟎% 𝟏 − 𝟓% = 𝟕𝟔%
𝒔𝒆𝒅𝒓 = 𝟏 − 𝟕𝟔% = 𝟐𝟒%
𝒅 = 𝒍𝒑 × 𝒅𝒓
𝒅 = 𝟐𝟑𝟑𝟎𝟎 × 𝟐𝟑% 𝒅 = 𝒍𝒑 × 𝒔𝒆𝒅
Therefore, since the
𝒅 = 𝟓𝟑𝟓𝟗 𝒅 = 𝟐𝟑𝟎𝟎𝟎 × 𝟐𝟒%
price of the same
𝒅 = 𝟓𝟓𝟐𝟎
𝒏𝒊𝒑 = 𝒍𝒑 − 𝒅 product is lower in Store
𝒏𝒊𝒑 = 𝟐𝟑𝟑𝟎𝟎 − 𝟓𝟑𝟓𝟗 𝒏𝒊𝒑 = 𝒍𝒑 − 𝒅 B than Store A, Store B
𝒏𝒊𝒑 = 𝟏𝟕𝟗𝟒𝟏 𝒏𝒊𝒑 = 𝟐𝟑𝟎𝟎𝟎 − 𝟓𝟓𝟐𝟎 offers the better price.
𝒏𝒊𝒑 = 𝟏𝟕𝟒𝟖𝟎
Business Math Class | CSNHS ABM
Problem 6
Choose which of the following stores offer a better price for a photocopying
machine of the same brand and model: Store A: lp is P25,300, discount is
23%; Store B: lp is P25,000, discounts are 20%, and 5%?

Store A: Store B:
𝒍𝒑 = 𝑷𝟐𝟓, 𝟑𝟎𝟎 𝒍𝒑 = 𝑷𝟐𝟓, 𝟎𝟎𝟎
𝒅𝒓 = 𝟐𝟑% 𝒏𝒊𝒑𝒓 = 𝟏 − 𝟐𝟎% 𝟏 − 𝟓% = 𝟕𝟔%
𝒔𝒆𝒅𝒓 = 𝟏 − 𝟕𝟔% = 𝟐𝟒%
𝒅 = 𝒍𝒑 × 𝒅𝒓
𝒅 = 𝟐𝟓𝟑𝟎𝟎 × 𝟐𝟑% 𝒅 = 𝒍𝒑 × 𝒔𝒆𝒅
Therefore, since the
𝒅 = 𝟓𝟖𝟏𝟗 𝒅 = 𝟐𝟓𝟎𝟎𝟎 × 𝟐𝟒%
price of the same
𝒅 = 𝟔𝟎𝟎𝟎
𝒏𝒊𝒑 = 𝒍𝒑 − 𝒅 product is lower in Store
𝒏𝒊𝒑 = 𝟐𝟓𝟑𝟎𝟎 − 𝟓𝟑𝟓𝟗 𝒏𝒊𝒑 = 𝒍𝒑 − 𝒅 B than Store A, Store B
𝒏𝒊𝒑 = 𝟏𝟗𝟒𝟖𝟏 𝒏𝒊𝒑 = 𝟐𝟓𝟎𝟎𝟎 − 𝟔𝟎𝟎𝟎 offers the better price.
𝒏𝒊𝒑 = 𝟏𝟗𝟎𝟎𝟎
Business Math Class | CSNHS ABM
Problem 6
Store A offers a smartphone for P6,800 with a 25% discount and an additional
P50 cash voucher for every purchase. Store B sells the same smartphone for
P6,750 with two discounts: 15% and 8% off the list price. Which store provides
the better deal, considering the cash voucher from Store A ?

Store A: Store B:
𝒍𝒑 = 𝑷𝟐𝟓, 𝟑𝟎𝟎 𝒍𝒑 = 𝑷𝟐𝟓, 𝟎𝟎𝟎
𝒅𝒓 = 𝟐𝟑% 𝒏𝒊𝒑𝒓 = 𝟏 − 𝟐𝟎% 𝟏 − 𝟓% = 𝟕𝟔%
𝒔𝒆𝒅𝒓 = 𝟏 − 𝟕𝟔% = 𝟐𝟒%
𝒅 = 𝒍𝒑 × 𝒅𝒓
𝒅 = 𝟐𝟓𝟑𝟎𝟎 × 𝟐𝟑% 𝒅 = 𝒍𝒑 × 𝒔𝒆𝒅
Therefore, since the
𝒅 = 𝟓𝟖𝟏𝟗 𝒅 = 𝟐𝟓𝟎𝟎𝟎 × 𝟐𝟒%
price of the same
𝒅 = 𝟔𝟎𝟎𝟎
𝒏𝒊𝒑 = 𝒍𝒑 − 𝒅 product is lower in Store
𝒏𝒊𝒑 = 𝟐𝟓𝟑𝟎𝟎 − 𝟓𝟑𝟓𝟗 𝒏𝒊𝒑 = 𝒍𝒑 − 𝒅 B than Store A, Store B
𝒏𝒊𝒑 = 𝟏𝟗𝟒𝟖𝟏 𝒏𝒊𝒑 = 𝟐𝟓𝟎𝟎𝟎 − 𝟔𝟎𝟎𝟎 offers the better price.
𝒏𝒊𝒑 = 𝟏𝟗𝟎𝟎𝟎
Business Math Class | CSNHS ABM
 1
Compute for the missing values.

Net invoice Net invoice

List price Discount Discount rate price price rate

2,046.60 197.84 1,848.76

 2
Compute for the missing values.

Net invoice Net invoice

List price Discount Discount rate price price rate

2,046.60 197.84 9.67% 1,848.76

 3
Compute for the missing values.

Net invoice Net invoice

List price Discount Discount rate price price rate

2,046.60 197.84 9.67% 1,848.76 90.33%

 4
Compute for the missing values.

Net invoice Net invoice

List price Discount Discount rate price price rate

11,094 721.11 10,372.89

 5
Compute for the missing values.

Net invoice Net invoice

List price Discount Discount rate price price rate

11,094 721.11 6.5% 10,372.89

 6
Compute for the missing values.

Net invoice Net invoice

List price Discount Discount rate price price rate

11,094 721.11 6.5% 10,372.89 93.5%

 7
Compute for the missing values.

Net invoice Net invoice

List price Discount Discount rate price price rate

2,776.80 187.90 6.77%

 8
Compute for the missing values.

Net invoice Net invoice

List price Discount Discount rate price price rate

2,776.80 187.90 6.77% 2,588.90

 9
Compute for the missing values.

Net invoice Net invoice

List price Discount Discount rate price price rate

2,776.80 187.90 6.77% 2,588.90 93.23%

 10
Compute for the missing values.

Net invoice Net invoice

List price Discount Discount rate price price rate

15,492 2,582 83.33%

 11
Compute for the missing values.

Net invoice Net invoice

List price Discount Discount rate price price rate

15,492 2,582 16.67% 83.33%

 12
Compute for the missing values.

Net invoice Net invoice

List price Discount Discount rate price price rate

15,492 2,582 16.67% 12,910 83.33%

 13
Compute for the missing values.

Net invoice Net invoice

List price Discount Discount rate price price rate

2,922 233.76 2,688.24

 14
Compute for the missing values.

Net invoice Net invoice

List price Discount Discount rate price price rate

2,922 233.76 8% 2,688.24

 15
Compute for the missing values.

Net invoice Net invoice

List price Discount Discount rate price price rate

2,922 233.76 8% 2,688.24 92%

 Take note of the following when solving
Remarks problems involving trade discounts

Understand the
Know the terms. difference of the
terms.

Learn how to
play with Be realistic.
formulas.

Business Math Class | CSNHS ABM

READ AND SOLVE CAREFULLY THE PROBLEMS BELOW.
1. A product was initially priced at P550 but sold for P440. Determine the
discount, the discount rate, and the net invoice price rate.
2. An item's net invoice price is P1,500, and the NIP rate is 65.5%. Calculate the
list price of the item, the discount, and the discount rate.
Net invoice price Net invoice price
List price Discount Discount rate
rate
2,436 295.20

2,314 10.25%

247.85 2,458.30

3,217 89.85%

13.25% 8,437.25