Discount: Formulas and Shortcuts for Easy Calculations
The concept of Discount is a mere extension of Profit and Loss chapter of Quantitative Aptitude Segment.
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 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:
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
DISCOUNT ON THE DISCOUNT
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:
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.