7.2 - Finding Discounts

In this subtopic, we will learn how to calculate discounts on marked prices of products. A discount is a reduction in the price of a product or service, usually expressed as a percentage of the marked price or the original price. When a discount is offered, the customer pays less than the marked price of the product. Understanding how to calculate the discount and the selling price is important for both consumers and businesses.

Discounts are usually given during sales or promotions and are represented as a percentage of the marked price. The formula to find the amount of discount is:

Discount Amount = $ \dfrac{\text{Discount Percentage}}{100} \times \text{Marked Price} $

Where:

• Discount Percentage: The percentage by which the price is reduced.
• Marked Price: The original price of the product before any discount is applied.

For example, if the marked price of an item is ₹500 and the discount offered is 20%, the discount amount would be calculated as follows:

Discount Amount = $ \dfrac{20}{100} \times 500 = 100 $

After applying the discount, the selling price of the product will be:

Selling Price = Marked Price - Discount Amount

In the example above, the selling price would be:

Selling Price = $ 500 - 100 = 400 $

This means that the customer will pay ₹400 for the item, and ₹100 is the discount amount offered on the original price.

Let us now look at an example with a different discount percentage:

If the marked price of a television is ₹8,000 and the discount offered is 15%, the calculation would be:

Discount Amount = $ \dfrac{15}{100} \times 8000 = 1200 $

The selling price would be:

Selling Price = $ 8000 - 1200 = 6800 $

Thus, after a 15% discount, the selling price of the television would be ₹6,800.

It is also important to note that sometimes, the discount is given on the cost price rather than the marked price. The cost price is the price at which the product was bought by the seller, and the seller may offer a discount on it to attract customers.

To calculate the discount on cost price, we use the same formula as for the marked price, but the basis of calculation changes to the cost price.

Discount Amount on Cost Price = $ \dfrac{\text{Discount Percentage}}{100} \times \text{Cost Price} $

Finally, if a product is being sold at a certain price after applying a discount, it is helpful to know how to calculate the percentage of discount given based on the marked price or cost price. To calculate the percentage discount, we use the following formula:

Discount Percentage = $ \dfrac{\text{Discount Amount}}{\text{Marked Price}} \times 100 $

By mastering these calculations, students can easily find out the amount of discount, selling price, and discount percentage in various real-life situations, helping them make informed financial decisions.