Understanding Discounts and Sale Price Calculation

Introduction

• Importance of knowing how to calculate discounts in daily life.
• Common scenarios: shopping in retail outlets, calculating discount percentages.

Basic Concept of Discount Calculation

• Discount Formula:
  • Discount = Original Price x Rate of Discount
• Example Provided:
  • Original Price is $250.
  • Discount rate offered is 20%.
  • Calculation steps:
    • Convert 20% to decimal: 0.20
    • Multiply original price by rate of discount:
      • $250 x 0.20 = $50
    • Therefore, the discount amount is $50.

Calculating Sale Price

• Formula for Sale Price:
  • Sale Price = Original Price - Discount Price
• Example Calculation:
  • Original Price = $250
  • Discount Price = $50 (calculated from the above example)
  • Sale Price Calculation:
    • $250 - $50 = $200
  • Thus, the sale price is $200.

Conclusion

• Understanding and using these formulas helps in everyday shopping and financial decision-making.
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