Introduction:

Discounts are an effective way to entice customers into making a purchase and help businesses boost their sales. Calculating discounts can be a straightforward process, but it’s essential to understand how the percentage system works to ensure you’re getting the best deals. In this article, we’ll discuss the basics of discount calculation and walk you through step-by-step examples.

What is a discount?

A discount is a reduction in price applied to a product or service, typically expressed as a percentage of the original price. This can range from minor markdowns during seasonal sales to significant price reductions for clearance items or promotional offers.

The basics of discount calculation:

To calculate the discount on an item, you simply need to know two things: the original price of the product and the discount rate being applied. The general formula for calculating the discount is:

Discount Amount = Original Price × Discount Rate

The result will be the amount you save on your purchase, expressed in currency (e.g., dollars). To find out the final price after applying the discount, subtract this discount amount from the original price:

Discounted Price = Original Price – Discount Amount

Step-by-step examples:

1. Let’s say you want to buy a piece of clothing that originally costs $50 and has a 15% off sale. First, convert the 15% discount rate into a decimal by dividing 15 by 100:

15 ÷ 100 = 0.15

2. Next, multiply the original price by this decimal:

$50 × 0.15 = $7.50

3. This result ($7.50) is your discount amount. Now subtract it from the original price to find out your final cost:

$50 – $7.50 = $42.50

So, after applying a 15% discount, your final cost for the item would be $42.50.

Conclusion:

Calculating discounts is a simple task that can be helpful while shopping. By understanding how discounts work and how to calculate them, you’ll be better equipped to recognize good deals and make informed decisions about your purchases. Just remember to use the basic discount formula: Discount Amount = Original Price × Discount Rate, and then subtract it from the original price to get the discounted price. Happy shopping!