Discount Formula

Calculating the discount is one of the most useful mathematical skills. We will apply it to give the tips at a restaurant, and sales in stores, and also set rates for own services. The basic way to calculate a discount is to multiply the original price by the decimal form of the given percentage rate. To calculate the sale price of any item, we need to subtract the discount from the original price. This article will help students to understand the concept of discount and discount formula with examples. Let us learn the concept in an easy way!

What is a Discount?

The term discount refers to the amount or percentage deducted from the normal selling price of something. The discount means a reduction in the price of a good or service. For example, we may ask the manager for a discount if the item is damaged.

Discount refers to the condition of the price of a bond that will be lower than the face value. Discount is a type of reduction or deduction in the cost price of a product. It is often used in consumer transactions, where people are provided with discounts on different products.

The Formula for Discount Computation

The discount rate is given here with percentage.

\(\large Discount = List\; Price-Selling\; Price\)

\(\large Selling\; Price=List\; Price-Discount\)

\(\large List\;Price=Selling\;Price+Discount\)

Also, the discount percentage Formula is given as:

\(\large Rate\;of\;Discount = Discount\;\% = \frac{Discount}{List\;Price}\times 100\)

\(\large Selling\;Price= List\;Price\left ( \frac{100-discount\;\%}{100} \right )\)

\(\large List\;Price= Selling\;Price\left (\frac{100}{100-discount\;\%} \right )\)

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Procedure to Find Discount

1. The rate is usually given as a percentage value.
2. To find the discount, we have to multiply the rate by the original price.
3. To find the sale price, we have to subtract the discount from the original price

Solved Examples for Discount Formula

Q.1: In a video store, a DVD that sells for Rs. 15 is marked, with 10% off. What will be the discount? What will be the sale price of the DVD in-store? Find using discount formula.

Solution: The discount rate is 10% i.e. 0.10 in decimals.

The discount amount will be: \(0.10 \times  Rs. 15 = Rs. 1.50\)

So, the sale price will be as given:

Sale price = 15.0 – 1.5 = Rs. 13.5

So, the discount will be Rs. 1.50 and the sale price will be Rs. 13.50.

Q.2: In a departmental store, an Rs. 40 dress is marked with Save 25 %. What will be the discount? What will be the sale price of this dress?

Solution:  The phrase, Save 25% (i.e. 0.25) , means discount rate.

The original price of the dress is given as Rs. 40.

The discount amount will be \(0.25 \times Rs. 40 = Rs. 10\)

The sale price will be as follows:

Sale price = 40 – 10 = Rs. 30

The discount will be at Rs. 10.00 and the sale price will be Rs. 30.00.

Q.3: In some grocery stores, Rs. 12 cases of soda are being sold at a 20% discount. What will be the discount? What will be the sale price of the case of soda?

Solution: The product is available at a 20 % discount rate.

The discount rate is 20 % ( i.e. 0.20).

The discount will be \(0.20 \times Rs. 12.00 = Rs. 2.40\)

The sale price will be as follows:

Sale price = Rs. 12.0 – Rs. 2.40

= Rs. 9.6

Thus the discount will be Rs. 2.4 and the sale price will be Rs. 9.6.