Answer: Discount is the difference between the marked price and the selling price of an article. Discount is calculated by the formula, Discount = Listed Price - Selling Price.
Explanation:
We come across terms like cost price, market price, discount, and selling price when purchasing an item. Customers are given discounts by retailers to encourage sales. A discount is a rebate or an offer given to customers at the listed price of a product.
List price, also known as the marked price, is the price of an item as declared by the seller or manufacturer, with no price reductions. The current market price of a commodity is referred to as its market price. It might be more or less than the cost price. In other words, it is the present price at which a product or commodity may be sold.
Understanding Discounts
A discount is a decrease in the original price of an item. It is often expressed as a percentage of the original price. For example, a 20% discount means that you pay 80% of the original price.
Cost Price Definition
Cst price is the amount of money spent to create products or services before any profit is added for the manufacturer or provider. It is also known by several other names, including real cost, final cost, and average cost. A cost price includes any additional pay, such as production, property expenses, materials, power, testing, worker wages, and everything else that must be paid for. It can be written as CP.
Example: A man had purchased a plot of land at a price of Rs.35000 some 10 years ago and the price of that particular plot at present is Rs.200000. For him, the Cost price of the land is Rs. 35000, and the Market price is Rs.200000.
Selling Price Definition
The actual price at which an item is sold after all the discounts are given to the customer on the product market price is referred to as the selling price. The selling price is used to determine the cost of selling an object and may be computed using the selling price formula. The selling price is the amount paid by the customer to purchase the goods. The actual selling price is the amount paid by a customer for a product or service. This is the price that is more than the cost of products and includes a proportion of profit. It can be written as SP.
Discount Rate
The reduction in the price of products or services supplied by shops at the indicated price is referred to as a discount. Discounts are commonly described using phrases such as “off” and “reduction.” It should be noted that the discount is always determined by the article’s marked price (list price).
The difference between the market price and the selling price is termed a Discount. This percentage of the rebate is typically provided to encourage sales or clear out outdated inventory.
How to Calculate the Discount?
To calculate the Discount, two steps to be followed,
- Step 1: Determine the difference between an item’s list price and its ultimate selling price.
- Step 2: Subtract the selling price from the list price to get the value of the discount amount.
Discount = Listed Price - Selling Price
Calculating Discount Percentage
Discounts can be expressed as an amount or as a percentage. When the price of an item is reduced and sold for less than its list price, it indicates that a discount has been provided. When this price reduction is stated as a percentage (percent), it is referred to as a discount percentage or the discount rate.
Discount (%) = (List price – Selling Price)/ List Price × 100
Discount % = (Discount/List Price) × 100
Sample Questions on How to Calculate the Discount
Question 1: Find the discount received by Rajesh on a chair, if the selling price of the chair is Rs 700 and the list price is Rs. 1000?
Solution:
Given,
List price = Rs 1000 and selling price = Rs 700.
Therefore,
Discount = List price – Selling price.
Discount = 1000 – 700
= 300
Hence, Rajesh received a discount of Rs 300.
Question 2: Find the Discount, if the listed product is Rs 500 and the selling price is Rs 300?
Solution:
Given:
List price = Rs 500 and selling price = Rs 300.
Therefore,
Discount = List price – Selling price.
Discount = 500 – 300
= 200
Hence, the discount of product is Rs 200.
Question 3: If the selling price of the goods is Rs 5000 and the listed price is Rs 7000?
Solution:
Given:
Listed price = Rs 7000
Selling price = Rs 5000
Using the calculating discount formula
Discount = Listed Price – Selling Price
Discount = 7000 – 5000
= 2000
Therefore, the discount received is of Rs 2000.
Question 4: What will be the discount if the market price is Rs 2500 and the selling price is Rs 2200?
Solution:
Given:
Listed price or Market Price = Rs 2500
Selling price = Rs 2200
Using the calculating discount formula
Discount = Listed Price – Selling Price
Discount = 2500 – 2200
= Rs 300
Therefore, the discount received is of Rs 300.
Question 5: What will be the market price if the discount is Rs 500 and the selling price is Rs 2200?
Solution:
Given:
Listed price or Market Price = ?
Selling price = Rs 2200
Using the calculating discount formula
Discount = Listed Price – Selling Price
500 = Listed Price – 2200
Listed Price (Market Price) = 500 + 2200
Therefore, the Market price is Rs 2700.
Question 6: What will be the selling price, if the discount is Rs 600 and Market Price is Rs 3500?
Solution:
Given:
Listed price or Market Price = Rs 3500
Selling price = ?
Using the calculating discount formula
Discount = Listed Price – Selling Price
600 = 3500 – Selling Price
Selling price = 3500 – 600
Therefore, Market price is Rs 2900
Question 7: If the Market price of a product is Rs 700, and there is a 15% discount on it, calculate the selling price at which the customer buys the product. ?
Solution:
15% discount on the MRP = (15/100) × 700
Discount (in Rs) = 10500/100
= Rs 105
Therefore, Selling Price = market price (listed price) – Discount
= 700 – 105
Therefore, after the discount, the selling price will be Rs 595.
Question 8: If the list price of a table is Rs 1500, and a Rs 600 discount is offered on the book, then what will be the discount percentage?
Solution:
Given:
Listed price = Rs 1500
Discount = Rs 600
Formula of Calculating
Discount Percentage (%) = (Discount/List Price) × 100
Discount (%) = (600/1500) × 100
= 60000/1500
= 40 %
Conclusion - How to Calculate the Discount?
Understanding how to calculate discounts can help you save money and make informed decisions when shopping. It’s a simple process that involves some basic arithmetic. So, the next time you see a sale, you’ll know exactly how much you’re saving!