Calculating discounts is a critical skill required to help save money. You can avail discounts during sale or even while ordering food.
It is a bright Sunday morning and Aman recently passed his exams with flying colours. To celebrate his achievements, his parents decide to take him out to buy a gift.
In the toy store, Aman spots two of his favourite action figures (A & B), each priced at 1000. However, both seemed to be tagged with two different discounted boards. Figure A highlighted 30% plus an additional 10% discount after that whereas figure B was at flat 40% off.
Aman’s parents asked him to pick one toy wisely. His mathematical brain decides to get into action to identify how the discounts differ from each other.
Upon calculating, Aman stands there wondering how putting discounts differently on the same price can result in two different selling prices. Excitedly, he shares this discovery with his mom. Impressed with his mental maths skills, she ends up gifting both of his favourite action figures.
Turns out that impressing your mother by calculating discounts quickly can help gain brownie points and even an extra toy!
Let’s dive into the concept of discount to understand how
What is the marked price?
The price of the product decided by the seller is the marked price. Marked price is also called listed price.
What is the selling price?
Selling price is the price at which an article is sold after a small amount of reduction or discount in the listed or marked price.
What is a discount?
The difference between the marked price and the selling price is known as a discount.
Formulas to calculate discounts:
Discount = Marked Price – Selling Price
Selling Price= Marked Price-Discount
Marked Price= Selling Price + Discount
If a discount is expressed as a percentage….
Discount = Marked Price x Discount Rate
Rate of Discount= Discount % = (Discount/Listed Price) x 100
In effect…
Discount = Listed price-Selling price
Discount % = (Listed price-Selling price)/Listed price x 100
We hope all the basics are clear. Now, let us level up a little and learn how to calculate discounts.
Step 1: Identify the values of the marked price and the final selling price of an item.
Step 2: Find the value of the discount amount by subtracting the selling price from the list price.
Step 3: If you wish to calculate the discount percentage, find the ratio of the discount and the list price and then multiply it by 100.
Let us go with an example to make things a little bit easy.
If the list price of a shirt is 100 rupees and it’s selling price is 90 rupees, then we can calculate its discount amount by subtracting the selling price from the list price i.e.
discount amount = marked price-selling price
Hence, discount amount=100-90 discount amount = 10
Now to calculate the discount percentage on the shirt, we need to find the ratio of the discount amount and the list price, which is
Discount %= (List price – Selling price)/ list price x 100
= 10/100 x 100
Discount % 10%
Therefore, there is a discount of 10% on the shirt.
Now, it is time for you to test these skills by finding out the final price at which Aman’s mother bought figure A and B respectively.
Solution: Marked price for toy A & B = 1000 Discount on toy A =30\%+10\% 1st Discount = 30/100 x 1000 = 300
Selling price = Marked price – Discount
Selling price after subtracting first discount = 1000-300 = 700
Additional 10% discount on resultant price = 10/100 x 700 =70
Final selling price = 700-70 = 630
Discount on toy B =40\%
40/100 × 1000 = 400
Selling price = Marked price – Discount 1000-400 600
Therefore, if Aman had to choose one of the toys and save some money,
choosing toy B is the wise decision as it offers a better discount.
Let’s dive into some practice questions with answers
Example 1
Using the formula for calculating discounts. find the discount received by Maria on a pack of biscuits, if the selling price is Rs 17 and the listed price is Rs 25.
Solution
The listed price = Rs 25
The selling price = Rs 17
Using the calculating discount formula,
Discount = Listed Price – Selling Price
Discount Rs 25-Rs 17 = Rs 8
Therefore, the discount received is of Rs 8.
Example 2
Razia purchased a fruit on a sale for Rs 13. while the marked price was Rs 17. Calculate the discount rate using the discount formula.
Solution:
Listed price = Rs 17
Selling price = Rs 13
Using the formula for calculating discounts.
Discount = Listed Price – Selling Price
Discount = Rs 17 – Rs 13 = Rs 4
Discount rate = Discount / Listed Price x 100
Discount rate = 4/17 x 100 = 23.53%
Hence, the discount rate is 23.53%.
Picture Credit : Google