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.

See also

GST
Capital Gain