CALCULATING THE NET PRICE FOR A CHAIN DISCOUNT

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CALCULATING THE NET PRICE FOR A CHAIN DISCOUNT

NP = L ( 1 – r1 ) ( 1 – r2 ) ( 1 – r3)

Chain discounts are discounts that are offered more than one. The concept is the same. The different is just to key in more than one discount.

Example:
Given the chain discounts are 30%, 10% and 5%.

NP = 2500 ( 1 – 0.03 ) ( 1 – 0.01 ) ( 1- 0.05 )
= RM 1496.25

SINGLE DISCOUNT EQUIVALENT

r = 1 – ( 1 – r1) (1 – r2) (1 – r3)