Notes on Discounts Tutorial

Introduction

• Discounts are usually expressed in percentages.
• Commonly included in profit and loss questions in placement tests, interviews, and competitive exams.
• Careerright.com offers practice questions on discounts and other quantitative aptitude topics.

What is a Discount?

• Definition: A reduction in the price.
• Example: A book priced at ₹250 with a ₹50 discount costs ₹200.
• Discounts can be expressed in absolute values (like ₹50) or percentages (like 10% or 12%).
• Common shopping discounts: "Flat 50% off", "Up to 40% off".

Key Terms

• Marked Price: Price displayed on an item.
• List Price: Synonymous with marked price.
• Advertised Price: Also means the same as marked price.

Example Calculation

1. Marked Price: ₹250
2. Discount: 10%
   • Remaining price: 100% - 10% = 90%
   • Price paid: 90% of ₹250 = ₹225.

Successive Discounts

• Definition: Applying more than one discount consecutively.
• Example: Two successive discounts of 20% and 10% on an item priced at ₹1000.

Formula for Successive Discounts

• Single Equivalent Discount:
  • Formula: Add - Multiply / 100
  • Example: For discounts of 10% and 5%:
    • Calculation: (10 + 5) - (10 * 5 / 100) = 14.5%.*

Problem-Solving Examples

1. Amit's Shirt:

   • Marked Price: ₹1000
   • Successive Discounts: 20% and 10%.
   • First discount (20%): New price = 80% of ₹1000 = ₹800.
   • Second discount (10%): New price = 90% of ₹800 = ₹720.

2. Equivalent Discount Calculation:

   • Example with discounts of 15% and 10%:
     • Equivalent Discount = (15 + 10) - (15 * 10 / 100) = 23.5%.*

Advanced Successive Discounts

• For three successive discounts, combine pairs:
  • Example: 10%, 20%, and 30% become equivalent by first calculating the first two and then combining with the third.

Questions and Case Studies

1. Raj's Watch:

   • Marked Price = ₹M
   • Selling Price with 5% discount is less than with 8%, resulting in ₹45 loss in profit.
   • Equation: 3% of M = ₹45, thus M = ₹1500.

2. Sonali's Discounts:

   • Compare 30% discount to successive discounts of 25% and 5%.
   • Final calculation indicates a difference of ₹25.

3. Chandrika's Price Adjustment:

   • Price increased by 40%, needs a discount to maintain no profit/loss.
   • Formula used: 40/140 = 28.5%.

Revenue Changes

• Example: Uday's saree sales revenue increased by ₹50 after discounting 25% and increasing sales volume by 40%.

Conclusion

• Understand percentages for calculating discounts.
• Remember: Marked Price > Selling Price > Cost Price.
• Practice with the formula for successive discounts: Add - Multiply / 100.
• Encourage sharing feedback and suggestions for future tutorials.