Commercial Arithmetics : Introduction to Discount

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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 $= \frac{6}{40} \times 100$ $=6/40 xx 100$ percent

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

• The discount of $6$ $6$ as percent of sale price $50$ $50$ coins $= \frac{6}{54} \times 100$ $=6/54 xx 100$ 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 $= 100 \times$ $= 100 xx$ (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 $= 100 \times$ $= 100 xx$ (marked price - sale price) $/$ $//$ marked price.

Outline

The outline of material to learn "commercial arithmetics" is as follows.

Note: Click here for the detailed ouline of commercial arthmetics.

• Ratio, Proportion, Percentage

→ Comparing Quantities

→ Introduction to Ratio

→ Ration & Fraction Differences

→ ProportionsP

→ Percentages

→ Conversion to percentage

• Unitary Method

→ Introduction to Unitary Method

→ Direct Variation

→ Inverse Variation

→ DIV Pair

• Simple & Compound Interest

→ Story of Interest

→ Simple Interest

→ Compound Interest

• Rate•Span=Aggregate

→ Understanding Rate-Span

→ Speed • Time=Distance

→ Work-rate • time = Work-amount

→ Fill-rate • time = Filled-amount

• Profit-Loss-Discount-Tax

→ Profit-Loss

→ Discount

→ Tax

→ Formulas