Personal Finance: Background You’ll Need 1

  • Calculate discount of a product

Calculating Discounts

When you buy an item on sale, the original price of the item has been reduced by some dollar amount. The discount rate, usually given as a percent, is used to determine the amount of the discount. To determine the amount of discount, we multiply the discount rate by the original price.

discount

An amount of discount is a percent off the original price.

 

[latex]\begin{array}{ccc}\hfill \text{amount of discount}& =& \text{discount rate}\cdot \text{original price}\hfill \\ \hfill \text{sale price}& =& \text{original price}-\text{discount}\hfill \end{array}[/latex]
The sale price should always be less than the original price. In some cases, the amount of discount is a fixed dollar amount. Then we just find the sale price by subtracting the amount of discount from the original price.

How To: Calculate Sale Price from a Discount

  1. Understand the Terms:
    1. Original Price: The price of the item before any discounts.
    2. Discount Rate: The percentage by which the price is reduced.
    3. Amount of Discount: The actual dollar amount that the price is reduced by.
    4. Sale Price: The new price of the item after the discount is applied.
  2. Calculate the Amount of Discount: Convert the discount rate from a percentage to a decimal by dividing by [latex]100[/latex]. Multiply the original price by the decimal discount rate.
  3. Calculate the Sale Price: Subtract the amount of discount from the original price.

Jason bought a pair of sunglasses that were on sale for [latex]\text{\$10}[/latex] off. The original price of the sunglasses was [latex]\text{\$39}[/latex]. What was the sale price of the sunglasses?

Elise bought a dress that was discounted [latex]\text{35%}[/latex] off of the original price of [latex]\text{\$140}[/latex].

  1. What was the amount of discount?
  2. What was the sale price of the dress?