Introductory paragraph: Determining the list price of an item on sale can be an essential skill when hunting for the best bargain. With various discounts and special deals retailers offer, it’s critical to know the original price to understand your savings truly. In this article, we will discuss three methods that will help you calculate the list price of a discounted item effectively.

Method 1: Using Percentage Discounts

1. Identify the discount percentage.

2. Divide the discount percentage by 100 to get the decimal equivalent.

3. Multiply the decimal equivalent by the discounted price.

4. Subtract this value from the discounted price to get the list price.

Example:

– Discounted price = $80

– Discount percentage = 20%

– Decimal equivalent = 0.20

– Discount amount = $80 * 0.20 = $16

– List price = $80 + $16 = $96

Method 2: Using “Buy One Get One” Offers or Multi-Purchase Discounts

1. Determine how many items are involved in the offer (e.g., buy two get one free).

2. Identify the total payment amount for these items.

3. Divide this amount by the number of items included in the promotion (excluding free ones) to obtain their average cost.

4. The average cost per item will represent your list price.

Example:

– Offer: Buy two, get one free

– Total payment amount for three items: $100

– Average cost per item: $100 / 2 (excluding free one) = $50

– List price: $50 per item

Method 3: Using Price Per Timeframe Discounts (For subscription-based services)

1. Identify the discounted and original duration of service (e.g., first three months half off).

2. Find out how much you save during this timeframe.

3. Multiply the savings by the duration of the discounted period and add it to the discounted price.

4. Divide this amount by the original or standard duration of service to get the list price.

Example:

– Half off for three months on a service that usually costs $40 per month

– Savings during discounted period: 50% * $40 = $20 per month

– Discounted price: $20 * 3 = $60 (for 3 months)

– Total cost at list price: $40 * 6 = $240 (for 6 months)

– List price: $240 / 6 = $40 per month

Conclusion: Knowing how to calculate the list price of an item on sale equips you with valuable insight into your potential savings. By using these three methods, you can compare prices and pick the best deal for your needs. Happy shopping!