*A discount is a deduction in the price of a good or service.*

## Formula

Discount

Percentage discount

### Example 1

**A pool store is having an end of financial year sale.**

**a) What is the discount and percentage discount of a pool reduced to $800 from $950 (to one decimal place)?**

Discount

Discount

Discount

Percentage discount

Percentage discount

Percentage discount

The pool is discounted by $150 and is reduced by 15.8%

**b) What is the original price of a pool if it has been reduced by 20% and is on sale for $700?**

We know that the pool has been discounted by 20%, so the sale price must be 80% of the original price.

Sale price is 80% of

of

The original price of the pool was $875.

#### See also

GST

Capital Gain

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