Monday, January 28, 2013

Discount and Discount Percentage

Discount and market price are two of the most important concepts in mathematics. These two concepts are also studied in finance and economics and play an important role in the real life market scenario. Let’s try to understand both the concepts in this post.

Market price is the price that is written in the price tag of a product. It is the amount that one needs to pay to buy a product. At times, customers are allowed to buy the product at a lesser price than the market price. For example: The market price of cot mobile for kids was Rs. 50. Maria was allowed to buy the same in Rs.45. Therefore, Rs. 5 is the discount offered to Maria while buying cot mobile for kids. The mathematical formula of finding discount price is Discount = Market Price – Selling Price (MP – SP).

Example 1: The market price of action figure toy is Rs.199. It is available in online shops for Rs.190. What is the discount offered?
Discount = Market Price – Selling Price
Discount = 199 – 190
= Rs. 9 is the discount offered on action figure toy in online shops.

Example 2: Mary bought kids’ toy guns at Rs. 50 and sold it for Rs. 40. What is the discount offered?
Discount = Market Price – Selling Price
Discount = 50 – 40
= Rs. 10 is the discount offered on kids toy guns by Mary.
Discount Percentage
The discount percentage is calculated on market price. The mathematical formula to find out discount percentage is [Discount / MP] X 100.

Example: Arun bought mobile phone for Rs.10000 and sold it out at Rs.9500. Find the discount and discount percentage:
Discount = Market Price – Selling Price
Discount = 10000 – 9500 = 500
Discount Percentage = [Discount / MP] X 100
= [500 / 10000] x 100
= 5%
The discount offered by Arun is 5%.
These are the basics on discount and discount percentages.

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