Discount: Formulas and Shortcuts for Easy Calculations

The concept of Discount is a mere extension of Profit and Loss chapter of Quantitative Aptitude Segment.

Learn the formulas and shortcuts of Profit and Loss

Calculating Discount is quite a useful mathematical skill as it can be applied in your day-to-day life such as:

•    Getting coupon discount at your meal order

•    Getting discount at a retail store:

•    Or giving discount on your own service to customers:

Let us understand the basic concept and formulas for calculating the percentage discount quickly and effortlessly.

DISCOUNT:

Discount means reduction of marked price by a seller to sell at a lower rate. In simple words, it means concession given by a seller on a product or service.

Discount is calculated on the basis of marked price:

Solved Example

Here is an example to understand the relationship between Marked Price, Selling Price and Discount:

Example: A trader offers his customers 15% discount and still makes a profit of 25%. What is the actual cost to him for an article marked Rs. 350?

Solution:          Given that Marked Price = Rs. 350

Marked Price – (Marked Price X Discount %) = Selling Price __________ (1)

And, Selling Price = Cost Price + (Cost Price X Gain %) __________________ (2)

From (1) and (2)

Marked Price – (Marked Price X Discount%) = Cost Price + (Cost Price X Gain%)

After calculation, we get,  Cost Price = Rs. 238

Learn the basic concept and formulas of Percentage

SUCCESSIVE DISCOUNTS:

Meaning:

DISCOUNT ON THE DISCOUNT

Formulas:

Effective discount on a product after x% and y% of discount is given by:

Discount when you buy x products and get y products free is given by:

Solved Example

Here is an example to understand the successive discount formula:

Example: Find the selling price of an article if a shopkeeper allows two successive discounts of 5% each on the marked price of Rs.80.

So, now you know how easy it is to calculate the discount even without using a calculator.