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Trade Discount Formula

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Trade Discount is a discount that is referred to as a discount given by the seller to the buyer at the time of purchase of goods. Check FAQs

TD = μ < i (LP, TDR)

TD - Trade Discount?LP - List Price?TDR - Trade Discount Rate?

Trade Discount Example

With values

With units

Only example

Here is how the Trade Discount equation looks like with Values.

Here is how the Trade Discount equation looks like with Units.

Here is how the Trade Discount equation looks like.

150 = μ < i (1000, 0.15)

150 = μ < i (1000, 0.15)

150 = μ < i (1000, 0.15)

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Trade Discount Solution

Follow our step by step solution on how to calculate Trade Discount?

FIRST Step Consider the formula

TD = μ < i (LP, TDR)

Next Step Substitute values of Variables

∴

TD = μ < i (1000, 0.15)

Next Step Prepare to Evaluate

∴

TD = μ < i (1000, 0.15)

LAST Step Evaluate

∴

TD = 150

Trade Discount Formula Elements

Variables

Functions

Trade Discount

Trade Discount is a discount that is referred to as a discount given by the seller to the buyer at the time of purchase of goods.

Symbol: TD

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Trade Discount

List Price

List Price is the original or undiscounted price of the product or service.

Symbol: LP

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find List Price

Trade Discount Rate

Trade Discount Rate is the percentage of discount offered by the seller.

Symbol: TDR

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Trade Discount Rate

multi

Multiplication is the process of calculating the product of two or more numbers.

Syntax: multi(a1, …, an)

Other formulas in Capital Budgeting category

Go Payback Period

PBP = \frac{Initial Invt}{C f}

Go Cost of Retained Earnings

C RE = (\frac{D}{P c}) + g

Go Cost of Debt

R d = Int.E \cdot (1 - T r)

Go After-Tax Cost of Debt

ATCD = (R f + CS P) \cdot (1 - T r)

How to Evaluate Trade Discount?

Trade Discount evaluator uses Trade Discount = multi(List Price,Trade Discount Rate) to evaluate the Trade Discount, The Trade Discount is the amount by which a manufacturer or wholesaler reduces the price of a product when it sells the product to a reseller. Trade Discount is denoted by TD symbol.

How to evaluate Trade Discount using this online evaluator? To use this online evaluator for Trade Discount, enter List Price (LP) & Trade Discount Rate (TDR) and hit the calculate button.

FAQs on Trade Discount

What is the formula to find Trade Discount?

The formula of Trade Discount is expressed as Trade Discount = multi(List Price,Trade Discount Rate). Here is an example- 150 = multi(1000,0.15).

How to calculate Trade Discount?

With List Price (LP) & Trade Discount Rate (TDR) we can find Trade Discount using the formula - Trade Discount = multi(List Price,Trade Discount Rate). This formula also uses Multiplication (multi) function(s).

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Trade Discount Formula

Trade Discount Example

Trade Discount Solution

Trade Discount Formula Elements

Other formulas in Capital Budgeting category

How to Evaluate Trade Discount?

FAQs on Trade Discount

Variable Name