Answer: [tex]Net\ cost=\$49.42[/tex]
Step-by-step explanation:
You need to analize the information given in the exercise.
In this case you know that the List price is:
[tex]List\ price=\$74.13[/tex]
And, based on the data given, you also know that the Trade discount is:
[tex]Trade\ discount=\frac{7}{21}[/tex]
Then, the first step you need to apply is to multiply the List price by the Trade discount, as you can observe below:
[tex](\$74.13)\frac{7}{21}=\$24.71[/tex]
Now it is important to remember that, by definition, the Net cost can be found by subtracting the List price (which in this case is $74.13) and the product of the List price and the Trade discount (which in this case is $24.71).
Then, through this procedure, you get the following Net cost:
[tex]Net\ cost=\$74.13-\$24.71\\\\Net\ cost=\$49.42[/tex]
