Discount

Percentages in a sale: the selling price after a discount, found in two ways; the percentage discount from two prices; one discount after another; and which of two offers costs less.

Before you start

To find a percentage of a quantity, write the percentage as a decimal and multiply: 20% of $45 is 0.2×45=90.2 \times 45 = 9, which is $9.

To decrease a quantity by a percentage in one step, multiply it by 100% minus the decrease. This is the multiplier: a decrease of 20% is ×80%=×0.8\times 80\% = \times 0.8, and a decrease of 15% is ×85%=×0.85\times 85\% = \times 0.85.

For one percentage change after another, each change is a percentage of the value it starts from, so multiply the multipliers. They may be multiplied in any order.

Money is given to the nearest cent. Keep the full calculator value in the working and round only the answer.

Discount

In a sale at a mall, a shop takes an amount off its usual prices. The usual price, the one on the tag before the sale, is the marked price. The amount taken off is the discount, and the price the buyer pays is the selling price. In a sale, the selling price is often called the sale price. A discount is usually given as a percentage of the marked price: "20% off" means that 20% of the marked price is taken off.

If 20% of the price is taken off, 80% of it is left. So "20% off" and "pay 80% of the marked price" say the same thing, and the selling price can be found in one step by multiplying by 0.8. In the same way, "x% off" means paying (100−x)%(100 - x)\% of the marked price.

Rule: discount and selling price

Discount=percentage discount×marked price\text{Discount} = \text{percentage discount} \times \text{marked price}

Selling price=marked price−discount\text{Selling price} = \text{marked price} - \text{discount}

Selling price=(100%−percentage discount)×marked price\text{Selling price} = (100\% - \text{percentage discount}) \times \text{marked price}

Percentage discount=discountmarked price×100%\text{Percentage discount} = \frac{\text{discount}}{\text{marked price}} \times 100\%

Example 1: The selling price after a discount

A pair of school shoes has a marked price of $45. In a sale it is sold at a discount of 20%. Find the discount and the selling price.

Solution

Draw the marked price as a bar of 10 equal units. The whole bar is 100% of the marked price, so each unit is 10% of it. A discount of 20% takes 2 units away, and the selling price is the 8 units that are left.

A bar model. Marked price: a bar of 10 equal units, marked 45 dollars. Selling price: a bar of 8 of the same units, marked with a question mark. Each unit is 10% of the marked price.Marked price$45Selling price?1 unit = 10% of the marked price

Method 1: find the discount, then take it away. Discount =20%×45=0.2×45=9= 20\% \times 45 = 0.2 \times 45 = 9, so the discount is $9.

Selling price =45−9=36= 45 - 9 = 36, so $36.

Method 2: in one step. 20% off means the buyer pays 100%−20%=80%100\% - 20\% = 80\% of the marked price. Selling price =80%×45=0.8×45=36= 80\% \times 45 = 0.8 \times 45 = 36, so $36.

The two methods agree: taking away 20% of the price leaves 80% of it.

The discount is $9 and the selling price is $36.

To find the percentage discount from the two prices, find the discount and write it as a percentage of the marked price. The marked price is the base because the discount is taken off the marked price.

Example 2: Finding the percentage discount

(a) A school bag with a marked price of $64 is sold for $48. Find the percentage discount.
(b) A pair of headphones with a marked price of $129 is sold for $99. Find the percentage discount, correct to 3 significant figures.

Solution

(a) The discount is the difference between the two prices: 64−48=1664 - 48 = 16, so $16.

The discount is a percentage of the marked price, $64: 1664×100%=25%\frac{16}{64} \times 100\% = 25\%

Check: 25% off $64 is 64×0.75=4864 \times 0.75 = 48, the selling price.

(b) Discount =129−99=30= 129 - 99 = 30, so $30.

As a percentage of the marked price: 30129×100%=23.255…%≈23.3%\frac{30}{129} \times 100\% = 23.255\ldots\% \approx 23.3\% (3 significant figures)

(a) The percentage discount is 25%.
(b) The percentage discount is about 23.3%.

Successive Discounts

A shop sometimes gives one discount after another: 30% off in a sale, then a further 20% off the sale price for members. Each discount is a percentage of the price it starts from, so the second discount is 20% of the sale price, not of the marked price. As with any one percentage change after another, multiply the multipliers. Two discounts in a row are not the same as one discount of their sum.

Example 3: A further discount for members

A necklace has a marked price of $2500. In a sale it is sold at 30% off, and members get a further 20% off the sale price. Find
(a) the price a member pays,
(b) the single percentage discount that a member gets on the marked price.

Solution

(a) After 30% off, the price is 70% of the marked price: 2500×0.7=17502500 \times 0.7 = 1750, so $1750.

The further 20% is taken off $1750, so a member pays 80% of $1750: 1750×0.8=14001750 \times 0.8 = 1400, so $1400.

In one line: 2500×0.7×0.8=14002500 \times 0.7 \times 0.8 = 1400

(b) A member pays 0.7×0.8=0.560.7 \times 0.8 = 0.56 of the marked price, which is 56% of it. The single discount is 100%−56%=44%100\% - 56\% = 44\%.

Check: the discount is 2500−1400=11002500 - 1400 = 1100, and 11002500×100%=44%\frac{1100}{2500} \times 100\% = 44\%.

The two discounts do not make 50%, because the second 20% is taken of a smaller price. Taking the discounts in the other order gives the same price, 2500×0.8×0.7=14002500 \times 0.8 \times 0.7 = 1400, because the multipliers can be multiplied in either order.

(a) A member pays $1400.
(b) This is a single discount of 44% on the marked price, not 50%.

Comparing Offers

When two shops, or two vouchers, offer different discounts on the same thing, work out the price each one gives and compare the prices. For successive discounts, the single discount (from the product of the multipliers) shows at once which offer is bigger.

Example 4: Which offer is better?

A jacket has a marked price of $120 at two shops. Shop A gives 20% off and then a further 10% off the sale price for members. Shop B gives 30% off. Mei Ling is a member of Shop A. Which shop sells her the jacket for less, and by how much?

Solution

Shop A: 120×0.8×0.9=86.4120 \times 0.8 \times 0.9 = 86.4, so $86.40.

Shop B: 120×0.7=84120 \times 0.7 = 84, so $84.

Difference: 86.40−84=2.4086.40 - 84 = 2.40, so $2.40.

The reason: at Shop A she pays 0.8×0.9=0.720.8 \times 0.9 = 0.72 of the marked price, which is 72% of it, a single discount of 28%. At Shop B the single discount is 30%.

Shop B sells her the jacket for less, by $2.40.

A discount may also be an amount of money, such as "$15 off". Which is better, an amount off or a percentage off, depends on the marked price, because a percentage of a bigger price is a bigger amount.

Example 5: An amount off or a percentage off

A shop gives Ravi a choice of two vouchers for a pair of headphones with a marked price of $90: "$15 off" or "15% off".
(a) Which voucher gives him the lower price, and by how much?
(b) For what marked price would the two vouchers give the same price?

Solution

(a) With "15% off" he pays 85% of the marked price: 90×0.85=76.590 \times 0.85 = 76.5, so $76.50.

With "$15 off" he pays 90−15=7590 - 15 = 75, so $75.

Difference: 76.50−75=1.5076.50 - 75 = 1.50, so $1.50. Here 15% of $90 is only 0.15×90=13.50.15 \times 90 = 13.5, which is $13.50, less than $15.

(b) The two vouchers give the same price when 15% of the marked price is $15. Then 1% of the marked price is 15÷15=115 \div 15 = 1, which is $1, so 100% is $100.

Check: 15% of $100 is 0.15×100=150.15 \times 100 = 15, which is $15. For a marked price above $100, 15% off takes off more than $15; below $100, it takes off less.

(a) "$15 off" gives the lower price, $75, which is $1.50 less than with "15% off".
(b) The two vouchers give the same price when the marked price is $100.

Common Mistakes

  • Adding successive discounts. 30% off and then a further 20% off is not 50% off. The buyer pays 0.7×0.8=0.560.7 \times 0.8 = 0.56 of the marked price, so the single discount is 44%.
  • Finding the percentage discount as a percentage of the selling price. A bag marked $64 sold for $48 has a discount of $16. 1648×100%≈33.3%\frac{16}{48} \times 100\% \approx 33.3\% is wrong; the base is the marked price: 1664×100%=25%\frac{16}{64} \times 100\% = 25\%.
  • Taking the second discount off the marked price. For 30% off and then a further 20% off, the 20% is of the sale price, not of the marked price. On a marked price of $2500, the second discount is 20% of $1750, which is $350, not 20% of $2500.
  • Rounding in the middle. $49.90 with 15% off and then a further 10% off: rounding 49.90×0.85=42.41549.90 \times 0.85 = 42.415 to 42.42 and then 42.42×0.9=38.17842.42 \times 0.9 = 38.178 gives $38.18. Keeping the full value, 42.415×0.9=38.173542.415 \times 0.9 = 38.1735, gives $38.17. Round only the answer.

Practice

Try each question before you open its solution. Give money to the nearest cent.

Question 1

A T-shirt has a marked price of $24. It is sold at 25% off. Find the selling price
(a) by finding the discount first,
(b) in one step.

ShowHide solution

(a) Discount =25%×24=0.25×24=6= 25\% \times 24 = 0.25 \times 24 = 6, so $6. Selling price =24−6=18= 24 - 6 = 18.

(b) 25% off means paying 100%−25%=75%100\% - 25\% = 75\% of the marked price: 24×0.75=1824 \times 0.75 = 18.

The selling price is $18.

Question 2

A calculator has a marked price of $32.50. At a bookshop's back-to-school sale it is sold at 12% off. Find the discount and the selling price.

ShowHide solution

Discount =12%×32.50=0.12×32.50=3.9= 12\% \times 32.50 = 0.12 \times 32.50 = 3.9, so $3.90.

Selling price =32.50−3.90=28.60= 32.50 - 3.90 = 28.60, so $28.60.

Check in one step: 12% off means paying 88%, and 32.50×0.88=28.632.50 \times 0.88 = 28.6.

The discount is $3.90 and the selling price is $28.60.

Question 3

A pair of running shoes has a marked price of $160 and is sold for $128. Find the percentage discount.

ShowHide solution

Discount =160−128=32= 160 - 128 = 32, so $32.

As a percentage of the marked price: 32160×100%=20%\frac{32}{160} \times 100\% = 20\%

Check: 160×0.8=128160 \times 0.8 = 128

The percentage discount is 20%.

Question 4

An umbrella has a marked price of $28. In a sale it is sold for $19.90. Find the percentage discount, correct to 3 significant figures.

ShowHide solution

Discount =28−19.90=8.10= 28 - 19.90 = 8.10, so $8.10.

As a percentage of the marked price: 8.1028×100%=28.928…%≈28.9%\frac{8.10}{28} \times 100\% = 28.928\ldots\% \approx 28.9\%

The percentage discount is about 28.9%.

Question 5

In a sale, a bicycle with a marked price of $389 is sold for $299. Ravi works out the percentage discount as 90299×100%\frac{90}{299} \times 100\%.
(a) Explain his mistake.
(b) Find the percentage discount, correct to 3 significant figures.

ShowHide solution

(a) The discount is 389−299=90389 - 299 = 90, so $90, which Ravi has right. But a percentage discount is a percentage of the marked price, $389, the price the discount is taken off. Ravi has divided by the selling price, $299.

(b) 90389×100%=23.136…%≈23.1%\frac{90}{389} \times 100\% = 23.136\ldots\% \approx 23.1\%

Ravi's way gives 90299×100%≈30.1%\frac{90}{299} \times 100\% \approx 30.1\%, which is too large.

(a) He divided by the selling price; the base must be the marked price.
(b) The percentage discount is about 23.1%.

Question 6

A washing machine has a marked price of $1200. It is sold at 20% off, and a further 5% is taken off the sale price for buyers who trade in their old machine. For a buyer who trades in an old machine, find
(a) the final price,
(b) the single percentage discount on the marked price.

ShowHide solution

(a) After 20% off: 1200×0.8=9601200 \times 0.8 = 960, so $960.

After a further 5% off the $960: 960×0.95=912960 \times 0.95 = 912, so $912.

(b) The buyer pays 0.8×0.95=0.760.8 \times 0.95 = 0.76 of the marked price, which is 76%. The single discount is 100%−76%=24%100\% - 76\% = 24\%.

Check: 1200−912=2881200 - 912 = 288, and 2881200×100%=24%\frac{288}{1200} \times 100\% = 24\%.

(a) The final price is $912.
(b) The single discount is 24%, not 25%.

Question 7

A pair of football boots has a marked price of $250. A shop takes 10% off, and then a further 10% off the sale price. Hui Min says, "That is the same as 20% off." Is she right? Find the price she pays and the single percentage discount.

ShowHide solution

After 10% off: 250×0.9=225250 \times 0.9 = 225, so $225. After a further 10% off: 225×0.9=202.5225 \times 0.9 = 202.5, so $202.50.

She pays 0.9×0.9=0.810.9 \times 0.9 = 0.81 of the marked price, which is 81%, so the single discount is 100%−81%=19%100\% - 81\% = 19\%.

Check: 250−202.50=47.50250 - 202.50 = 47.50, and 47.50250×100%=19%\frac{47.50}{250} \times 100\% = 19\%.

20% off would give 250×0.8=200250 \times 0.8 = 200, which is $200. The second 10% is taken of $225, not of $250, so it is only $22.50.

She is not right. She pays $202.50, a single discount of 19%, not 20%.

Question 8

A pair of jeans has a marked price of $86 at two shops. Shop A gives 25% off. Shop B gives 15% off and then a further 10% off the sale price. Which shop is cheaper, and by how much? What single percentage discount does Shop B give?

ShowHide solution

Shop A: 86×0.75=64.586 \times 0.75 = 64.5, so $64.50.

Shop B: 86×0.85×0.9=65.7986 \times 0.85 \times 0.9 = 65.79, so $65.79.

Difference: 65.79−64.50=1.2965.79 - 64.50 = 1.29

At Shop B the buyer pays 0.85×0.9=0.7650.85 \times 0.9 = 0.765 of the marked price, which is 76.5%, so the single discount is 100%−76.5%=23.5%100\% - 76.5\% = 23.5\%, less than 25%.

Shop A is cheaper by $1.29. Shop B's single discount is 23.5%.

Question 9

An electronics shop offers two vouchers: "$18 off" or "12% off".
(a) Siti buys a rice cooker with a marked price of $120. Which voucher should she use, and how much less does she pay with it?
(b) Mr Tan buys a vacuum cleaner with a marked price of $200. Which voucher should he use, and how much less does he pay with it?
(c) For what marked price do the two vouchers give the same price?

ShowHide solution

(a) 12% off: 120×0.88=105.6120 \times 0.88 = 105.6, so $105.60. $18 off: 120−18=102120 - 18 = 102, so $102. "$18 off" is better, by 105.60−102=3.60105.60 - 102 = 3.60, which is $3.60.

(b) 12% off: 200×0.88=176200 \times 0.88 = 176, so $176. $18 off: 200−18=182200 - 18 = 182, so $182. "12% off" is better, by 182−176=6182 - 176 = 6, which is $6.

(c) The same price when 12% of the marked price is $18. 1% is 18÷12=1.518 \div 12 = 1.5, which is $1.50, so 100% is 1.5×100=1501.5 \times 100 = 150, which is $150.

Check: 12% of $150 is 0.12×150=180.12 \times 150 = 18. Below $150 the $18 voucher takes off more; above $150 the 12% voucher does, as (a) and (b) show.

(a) Siti should use "$18 off"; she pays $3.60 less.
(b) Mr Tan should use "12% off"; he pays $6 less.
(c) At a marked price of $150.

Question 10

In a sale at a mall, a television with a marked price of $400 is sold at 10% off. Members get a further 20% off the sale price, and paying with the mall's card takes a further 5% off that. Ali is a member and pays with the card.
(a) Find the price Ali pays.
(b) Find the single percentage discount he gets on the marked price.

ShowHide solution

(a) After 10% off: 400×0.9=360400 \times 0.9 = 360. After a further 20% off: 360×0.8=288360 \times 0.8 = 288. After a further 5% off: 288×0.95=273.6288 \times 0.95 = 273.6, so $273.60.

In one line: 400×0.9×0.8×0.95=273.6400 \times 0.9 \times 0.8 \times 0.95 = 273.6

(b) He pays 0.9×0.8×0.95=0.6840.9 \times 0.8 \times 0.95 = 0.684 of the marked price, which is 68.4%, so the single discount is 100%−68.4%=31.6%100\% - 68.4\% = 31.6\%.

Check: 400−273.60=126.40400 - 273.60 = 126.40, and 126.40400×100%=31.6%\frac{126.40}{400} \times 100\% = 31.6\%. Adding the three discounts would give 35%, which is too much.

(a) Ali pays $273.60.
(b) The single discount is 31.6%.

Question 11

A bag has a marked price of $80. In a sale it is sold at 20% off. On the last day of the sale, the shop takes a further percentage off the sale price, so that the bag is then sold at 40% off the marked price altogether. What is the further percentage taken off the sale price?

ShowHide solution

Sale price: 80×0.8=6480 \times 0.8 = 64, so $64.

Price on the last day: 40% off the marked price is 80×0.6=4880 \times 0.6 = 48, so $48.

The further discount is 64−48=1664 - 48 = 16, so $16, and it is taken off the sale price: 1664×100%=25%\frac{16}{64} \times 100\% = 25\%.

Check with the multipliers: 0.8×0.75=0.60.8 \times 0.75 = 0.6, which is 60% of the marked price, so 40% off altogether. The further discount is not 40%−20%=20%40\% - 20\% = 20\%: that would give 64×0.8=51.264 \times 0.8 = 51.2, which is $51.20, not $48.

The further discount is 25% of the sale price.

Key Points

  • Selling price = marked price − discount. "x% off" means paying (100 − x)% of the marked price: "20% off" is × 0.8.
  • Percentage discount =discountmarked price×100%= \frac{\text{discount}}{\text{marked price}} \times 100\%: the base is the marked price, never the selling price.
  • Successive discounts: each is taken off the price it starts from, so multiply the multipliers, in either order. 30% off and then 20% off is 44% off, not 50%.
  • To compare offers, work out the price each one gives, or the single discount from the product of the multipliers.
  • An amount off and a percentage off are worth the same at only one marked price; above it the percentage takes off more.
  • Give money to the nearest cent, and round only at the end.

Exercises on this lesson in the Secondary 1 book

‹ 5.9 Reverse Percentages 5.11 GST and Service Charge ›

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