Discount and Discount Percentage

Discount: Discount is defined as the amount of rebate given on the label price (marked price) of an article. It is given by merchants/shopkeepers for attracting customers for increasing their sales. The customer or buyer pays the difference between the marked price and the discount. Thus,

S.P. = Marked Price - Discount

Illustration: A shopkeeper marked an article at rs 4950. He then gave a discount of Rs 495. Find his discount %?

Solution: Marked Price = Rs 4950

               Discount = Rs 495

Illustration: Articles are marked at a price which gives a profit of 25%. After allowing a certain discount, the profit reduces to . Find the discount percent.

Solution: Let the C.P. of an article be Rs 100. Then, to attain a profit of 25%, marked price must be 25% more than the cost price.

So, Marked price = Rs 100 + Rs 25 = Rs 125

After allowing a certain discount the profit reduces to .

So, Profit =

So, S.P. = C.P. + Profit

Now, M.P. = S.P. + Discount

  Discount = M.P.  - S.P.

 So, Discount % 

Hence, discount = 10%