Discount
What is Discount?
The price printed on the label or tagged on an article, also known as List Price or Tag Price.
Key formula / rule: Discount Amount
Key points
- Define Marked Price, Selling Price, and Discount.
- Calculate discount amount and discount percentage given relevant values.
- Determine the Selling Price after a given discount.
- Calculate the Marked Price given Selling Price and discount percentage.
Common exam trap
Calculating discount on the Selling Price instead of the Marked Price.
Definitions
- Term
Marked Price (MP)
- Meaning
The price printed on the label or tagged on an article, also known as List Price or Tag Price.
- Term
Selling Price (SP)
- Meaning
The price at which an article is actually sold to the customer after any discount.
- Term
Discount (D)
- Meaning
The reduction offered on the Marked Price of an article.
- Term
Successive Discounts
- Meaning
When multiple discounts are applied one after another on the reduced price.
Learning objectives
Define Marked Price, Selling Price, and Discount.
Calculate discount amount and discount percentage given relevant values.
Determine the Selling Price after a given discount.
Calculate the Marked Price given Selling Price and discount percentage.
Compute the equivalent single discount for two or more successive discounts.
Solve problems involving discount in conjunction with profit and loss.
Formulae
- Name
Discount Amount
- Note
The absolute reduction in price.
- Expression
Discount = Marked Price - Selling Price
- Name
Discount Percentage
- Note
Always calculated with respect to the Marked Price.
- Expression
Discount % = (Discount / Marked Price) × 100
- Name
Selling Price (from Marked Price and Discount %)
- Note
Direct calculation of SP after a given discount.
- Expression
Selling Price = Marked Price × (100 - Discount %) / 100
- Name
Marked Price (from Selling Price and Discount %)
- Note
To find the original listed price.
- Expression
Marked Price = Selling Price × 100 / (100 - Discount %)
- Name
Equivalent Single Discount (for two successive discounts)
- Note
Combines two percentage discounts into one overall discount percentage.
- Expression
Dequivalent = [D1 + D2 - (D1 × D2) / 100]%
Prerequisites
Basic arithmetic operations (addition, subtraction, multiplication, division).
Understanding of percentages and their calculations.
Concept of fractions and decimals.
Basic algebraic manipulation for solving equations.
Common mistakes
Calculating discount on the Selling Price instead of the Marked Price.
Incorrectly applying the formula for successive discounts.
Confusing discount with a loss percentage.
Assuming that two successive discounts of D1% and D2% are equivalent to a single discount of (D1 + D2)%.
Not converting percentages to decimals or fractions correctly during calculations.
Keywords
Discount
Marked Price
Selling Price
List Price
Discount Percentage
Successive Discounts
Equivalent Discount
Profit and Loss
Practice preview
A trader marks his goods at 40% above the cost price. He allows a discount of 20% on the marked price. What is his profit percentage?…
hard
After a 20% discount, a book is sold for Rs. 240. What was the marked price of the book?…
easy
An article is marked at Rs. 1500. It is sold after two successive discounts of 10% and 5%. What is its selling price?…
medium