maths > commercial-arithmetics

Introduction to Discount

what you'll learn...

overview

This page introduces the terms marked-price and discount. It explains that the buyer sees the marked price and has a discount on that, and so discount is calculated as a percent of the marked-price.

marked price

A pen has a price tag given as $20$$20$ coins. For a customer, shopkeeper offers the pen for $19$$19$ coins. Customer buys for $19$$19$ coins.

The sale price is $19$$19$ coins.

The original price of the pen is called "marked price".

The phrase "marked price" means: the price that is marked on the item on sale.

Marked price : The price that is marked on the item on sale is called marked price.

discount

A pen has a price tag given as $20$$20$ coins. For a customer, shopkeeper offers the pen for $19$$19$ coins and customer buys for $19$$19$ coins. Thus the marked price is $20$$20$ coins and the sale price is $19$$19$ coins.

The difference between mark and sale price is $20-19=1$$20 - 19 = 1$ coin. This difference in price is called "discount".

The word "discount" means: reduction in the amount.

Discount : The reduction in the marked price is the discount.

discount percent

The discount is usually given as percentage. Let us consider a pen

• The cost price of the pen is $40$$40$ coins.

• The marked price of the pen is $60$$60$ coins.

• The discount on the pen is $6$$6$ coins.

• After discount the sale price is $54$$54$ coins. To announce the discount as percentage, one of the following is used.

• The discount of $6$$6$ as percent of cost price $40$$40$ coins $=\frac{6}{40}×100$$= \frac{6}{40} \times 100$ percent

• The discount of $6$$6$ as percent of marked price $60$$60$ coins $=\frac{6}{60}×100$$= \frac{6}{60} \times 100$ percent

• The discount of $6$$6$ as percent of sale price $50$$50$ coins $=\frac{6}{54}×100$$= \frac{6}{54} \times 100$ percent

The discount is meant for the customer and the customer sees the price tag of $60$$60$ coins. So the discount percentage is given as percent of marked price.

Discount Percent : The discount as a percent of the marked-price is the discount percentage.
discount percent $=100×$$= 100 \times$ (marked price - sale price) $/$$/$ marked price.

summary

Marked price : The price that is marked on the item on sale is called marked price.

Discount : The reduction in the marked price is the discount.

Discount Percent : The discount as a percent of the marked-price is the discount percentage.
discount percent $=100×$$= 100 \times$ (marked price - sale price) $/$$/$ marked price.

Outline