Discounts

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

Formula

Discount $= original$ $price-sale$ $price$

Percentage discount $=\dfrac {discount}{original\hspace{0.1cm}price}\times 100$

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 $= original$ $price-sale$ $price$
Discount $= 950-800$
Discount $= 150$

Percentage discount $=\dfrac {discount}{original\hspace{0.1cm}price}\times 100$
Percentage discount $=\dfrac {150}{950}\times 100$
Percentage discount $=15.789$

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 $x$
$700=80%$ of $x$
$700=\frac {80}{100}\times x$
$700=0.8x$
$x=875$

The original price of the pool was $875.

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