What Is Discount?
When businesses want to attract customers or clear old stock, they often reduce the price of an item below its original tag. This reduction is called a discount.
The original price shown on the price tag of an item before any discount is applied.
The amount of money by which the marked price is reduced. It represents a percentage decrease on the original price.
The actual price a customer pays after the discount has been applied.
The key relationship is:
Simple Discount Example
A dishwasher has a marked price of 120 discount is offered. Find the sale price.
\text{Selling Price} = \\$495 - \\$120 = \\$375
The customer pays $375.
Discount as a Percentage
Most of the time, discounts are expressed as a percentage of the marked price rather than a fixed dollar amount. This makes it easy to apply the same deal to items of different prices.
There are two methods to calculate the selling price after a percentage discount:
Method 1 — Find the discount amount, then subtract:
- Convert the percentage to a decimal and multiply by the marked price to find the discount amount.
- Subtract the discount from the marked price.
Method 2 — Multiplier method (quicker):
If the discount is %, then the customer pays % of the marked price.
Percentage Discount — Both Methods
A video projector has a marked price of $1060. A 22% discount is offered. Find the selling price.
Method 1:
- Discount = 22% of 0.22 \times \233.20$
- Selling price = 1060 - \826.80$
Method 2 (Multiplier):
- Customer pays of the marked price.
- Selling price = 1060 = \
Both methods give the same answer: $826.80.
The multiplier method is faster and less prone to arithmetic errors — especially useful under timed conditions. Always ask: "What percentage does the customer actually pay?"
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