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Discount refers to a reduction in the usual price of an item or service. Discounts are often used in sales and marketing to attract customers. Discount can be expressed as a percentage or a fixed amount.
Types of Discounts
- Percentage Discount: A specific percentage is reduced from the original price.
- Fixed Discount: A fixed amount is subtracted from the original price.
- Successive Discounts: Multiple discounts applied one after another.
 Discount Practice problems Discount Formula is used to calculate discount by its market price and selling price.
Using Marked Price and Selling Price:
Discount = Marked Price – Selling Price
Using Marked Price and Discount Rate:
Discount = Marked Price × Discount Rate
This formula is used to calculate the actual monetary amount of the discount.
Discount Rate = (Discount / Marked Price) × 100%
This formula calculates the percentage discount offered on a product.
Selling Price Calculation
Using Marked Price and Discount amount :
Selling Price = Marked Price – Discount
Using Marked Price and Discount Rate:
Selling Price = Marked Price × (1 – Discount Rate)
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Practice Questions on Discounts : Solved
Example Question 1: A television priced at $800 is sold for $680. What is the discount rate?
Solution:
Step 1: Identify the given information
Marked Price (M.P) = $800
Selling Price (S.P) = $680
Step 2: Calculate the Discount
Discount = Marked Price – Selling Price
Discount = $800 – $680 = $120
Step 3: Calculate the Discount Rate
Discount Rate = (Discount ÷ Marked Price) × 100%
Discount Rate = ($120 ÷ $800) × 100%
Discount Rate = 0.15 × 100% = 15%
Therefore, the discount rate is 15%.
Example Question 2: A car’s original price is $25,000, and it’s on sale for $22,500. Calculate the discount rate.
Solution:
Step 1: Identify the given information
Marked Price (M.P) = $25,000
Selling Price (S.P) = $22,500
Step 2: Calculate the Discount
Discount = Marked Price – Selling Price
Discount = $25,000 – $22,500 = $2,500
Step 3: Calculate the Discount Rate
Discount Rate = (Discount ÷ Marked Price) × 100%
Discount Rate = ($2,500 ÷ $25,000) × 100%
Discount Rate = 0.10 × 100% = 10%
Therefore, the discount rate is 10%.
Example Question 3: A book with a cover price of $40 is being sold for $32. What’s the discount rate?
Solution:
Step 1: Identify the given information
Marked Price (M.P) = $40
Selling Price (S.P) = $32
Step 2: Calculate the Discount
Discount = Marked Price – Selling Price
Discount = $40 – $32 = $8
Step 3: Calculate the Discount Rate
Discount Rate = (Discount ÷ Marked Price) × 100%
Discount Rate = ($8 ÷ $40) × 100%
Discount Rate = 0.20 × 100% = 20%
Therefore, the discount rate is 20%.
Example Question 4: A pair of shoes marked at $120 is on sale for $90. Calculate the discount rate.
Solution:
Step 1: Identify the given information
Marked Price (M.P) = $120
Selling Price (S.P) = $90
Step 2: Calculate the Discount
Discount = Marked Price – Selling Price
Discount = $120 – $90 = $30
Step 3: Calculate the Discount Rate
Discount Rate = (Discount ÷ Marked Price) × 100%
Discount Rate = ($30 ÷ $120) × 100%
Discount Rate = 0.25 × 100% = 25%
Therefore, the discount rate is 25%.
Example Question 5: A laptop’s original price is $1,200, and it’s discounted by $180. What’s the discount rate?
Solution:
Step 1: Identify the given information
Marked Price (M.P) = $1,200
Discount = $180
Step 2: Calculate the Discount Rate
Discount Rate = (Discount ÷ Marked Price) × 100%
Discount Rate = ($180 ÷ $1,200) × 100%
Discount Rate = 0.15 × 100% = 15%
Therefore, the discount rate is 15%.
Example Question 6: A dress priced at $80 is sold for $68. Calculate the discount rate.
Solution:
Step 1: Identify the given information
Marked Price (M.P) = $80
Selling Price (S.P) = $68
Step 2: Calculate the Discount
Discount = Marked Price – Selling Price
Discount = $80 – $68 = $12
Step 3: Calculate the Discount Rate
Discount Rate = (Discount ÷ Marked Price) × 100%
Discount Rate = ($12 ÷ $80) × 100%
Discount Rate = 0.15 × 100% = 15%
Therefore, the discount rate is 15%.
Example Question 7: A refrigerator’s marked price is $1,500, and it’s on sale for $1,275. What’s the discount rate?
Solution:
Step 1: Identify the given information
Marked Price (M.P) = $1,500
Selling Price (S.P) = $1,275
Step 2: Calculate the Discount
Discount = Marked Price – Selling Price
Discount = $1,500 – $1,275 = $225
Step 3: Calculate the Discount Rate
Discount Rate = (Discount ÷ Marked Price) × 100%
Discount Rate = ($225 ÷ $1,500) × 100%
Discount Rate = 0.15 × 100% = 15%
Therefore, the discount rate is 15%.
Example Question 8: A watch with a price tag of $250 is being sold for $200. Calculate the discount rate.
Solution:
Step 1: Identify the given information
Marked Price (M.P) = $250
Selling Price (S.P) = $200
Step 2: Calculate the Discount
Discount = Marked Price – Selling Price
Discount = $250 – $200 = $50
Step 3: Calculate the Discount Rate
Discount Rate = (Discount ÷ Marked Price) × 100%
Discount Rate = ($50 ÷ $250) × 100%
Discount Rate = 0.20 × 100% = 20%
Therefore, the discount rate is 20%.
Example Question 9: A sofa set originally priced at $2,000 is on sale for $1,600. What’s the discount rate?
Solution:
Step 1: Identify the given information
Marked Price (M.P) = $2,000
Selling Price (S.P) = $1,600
Step 2: Calculate the Discount
Discount = Marked Price – Selling Price
Discount = $2,000 – $1,600 = $400
Step 3: Calculate the Discount Rate
Discount Rate = (Discount ÷ Marked Price) × 100%
Discount Rate = ($400 ÷ $2,000) × 100%
Discount Rate = 0.20 × 100% = 20%
Therefore, the discount rate is 20%.
Example Question 10: A smartphone’s original price is $600, and it’s discounted by $90. Calculate the discount rate.
Solution:
Step 1: Identify the given information
Marked Price (M.P) = $600
Discount = $90
Step 2: Calculate the Discount Rate
Discount Rate = (Discount ÷ Marked Price) × 100%
Discount Rate = ($90 ÷ $600) × 100%
Discount Rate = 0.15 × 100% = 15%
Therefore, the discount rate is 15%.
Discount Practice Questions: Unsolved
Question 1: A shirt originally priced at $50 is on sale for 20% off. What is the final price?
Question 2: If an item costs $80 after a 15% discount, what was its original price?
Question 3: A store offers a 30% discount on all items. If you buy a product for $56 after the discount, how much did you save?
Question 4: You have a coupon for $15 off any purchase over $100. If you buy an item for $120, what percentage discount does this represent?
Question 5: A car dealership offers a 5% discount on cash purchases. If a car’s sticker price is $22,000, how much would you save by paying cash?
Question 6: An item’s price is reduced by 25%, then by an additional 10% on the new price. What is the total percentage discount?
Question 7: If a product costs $60 and has a profit margin of 20%, what was the cost price for the seller?
Question 8: A store has a “Buy 2, Get 1 Free” offer on items costing $30 each. What is the effective discount percentage if you buy 3 items?
Question 9: An online retailer offers free shipping on orders over $50. If shipping normally costs $5, what percentage savings does this represent on a $60 order?
Question 10: A subscription service costs $120 per year. If you prepay for 2 years, you get a 15% discount. How much would you save compared to paying for 2 years separately?
Discount Practice Questions – FAQs
What is a discount?
A discount is a reduction in the price of a product or service from its original selling price.
How do I calculate a percentage discount?
Multiply the original price by the discount percentage, then subtract that amount from the original price.
What’s the difference between a discount and a rebate?
A discount reduces the price at the time of purchase, while a rebate is a partial refund after the purchase.
Can discounts ever be bad for consumers?
Sometimes, as discounts might encourage unnecessary spending or mask inferior product quality.
What is a loss leader in retail?
It’s a product sold at a loss to attract customers, hoping they’ll buy other, more profitable items.
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