If the net price of a stove is $900 and the trade discount rate is 40 percent, what is the list price?

To find the list price when you know the net price and the trade discount rate, you can use the following formula:

List Price = Net Price / (1 – Trade Discount Rate)

In this case, the net price is $900 and the trade discount rate is 40%, or 0.40 when expressed as a decimal. Now, plug these values into the formula:

List Price = $900 / (1 – 0.40)

Calculating the denominator:

(1 – 0.40) = 0.60

Now, substitute this back into the equation:

List Price = $900 / 0.60

Now, perform the division:

list price = $1500.

So, the correct answer is $1500. It means that the stove was originally priced at $1500, before applying the 40% trade discount that reduced it to the net price of $900.