Discount (Definition, Types, Formulas, Tricks and Examples)

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What is Called Discount

When we buy any item, we get a discount on that item, it is called discount.

When a businessman sells an item to his customer, he gives some discount on the marked price, this discount is called discount. The general meaning of discount is discount, discount is always given on marked price.

Example :- An item whose marked price is Rs 500. are available at 10% discount. What will be the selling price of that item?

Solution:- Total discount = 10% of Rs.500
= 500 × 1/10
= Rs 50
Hence selling price = 500 – 20
= Rs 480
Ans. Rs 480

Discount Formula

• Discount = Face value × Discount rate / 100
• Cash discount = List price – Trade discount × Rate / 100
• Marked price = Selling price × 100/(100 – Discount rate)
• Selling price × (100 – Discount rate)/100
• Selling price = Marked price – Discount
• Percentage discount = Discount amount × 100/Mark price

If a discount of r% is being given on selling an item, then

• Selling price of the article = Marked price × (100 – r)/100

Types of Discount

There are Three types of Discount.

1. Trade Discount :- The discount given on the marked price of an item on sale is called trade discount.

2. Cash Discount :- The discount given for the purpose of obtaining cash payment from customers or sellers immediately or within a certain period is called cash discount.

3. Retail Discount :- When a shopkeeper or retailer sells goods to customers at a price lower than the marked price to increase his sales. So it is called retail or retail discount.

Important Points Related to Discount

1. If a discount of r% and R% is being given on the marked price of an item respectively, then

Selling price of the article = Marked price × (100 – r) / 100 × (100 – R) / 100

2. If there are two discount series r% and R%, then their equivalent discount will be (r + R – rR/100)%.
3. If you want to get a profit of R% even by giving r% discount on an item, then

Marked price of the article = Cost price × [(100 + R) / (100 – r )]

4. If a profit of R% is to be obtained even after giving r% discount on an item, then the marked price of the item will be increased by [(r + R / 100 – r) × 100].
5. Marked Price = Selling Price × 100 / (100% – %) × 100 / (100% – %) 100 / (100% – % )………….
6. Selling Price = Marked Price × (100% – %)/100 × (100% – %)/100 × (100% – %)/100× ……….

Discount Questions and Answers

Q.1 Which is the only discount equivalent to successive discounts of 5% and 15%?
A.20.98%
B.19.25%
C.17.25%
D.19.25%

Solution:- Selling price = Marked price × (100% – %)/100 × (100% – %)/100 × (100% – %)/100× ……….
= 100 × (100% – 5%)/100 × (100% – 15%)/100
= 100 × 95/100 × 85/100
= 323/4
= 80.75
100% – 80.75%
Ans. 19.25%

Q.2 Which is the only discount equivalent to successive discounts of 10% and 20%?
A.20%
B.28%
C.30%
D.35%

Solution:- Selling price = Marked price × (100% – %)/100 × (100% – %)/100 × (100% – %)/100× ……….
= 100 × (100% – 10%)/100 × (100% – 20%)/100
= 100 × 90/100 × 80/100
= 72
100% – 72%
Ans. 28%

Q.3 Which is the only discount equivalent to successive discounts of 10%, 20%, and 30%?
A.32.6
B.40.8
C.49.6
D.84.5

Solution:- Selling price = Marked price × (100% – %)/100 × (100% – %)/100 × (100% – %)/100× ……….
= (90 × 80 × 70) / 100 × 100
(72 × 7) / 10
= 504/10
= 50.4
= 100 – 50.4
Ans. 49.6

Q.4 Which is the only discount equivalent to successive discounts of 10% and 30%?
A.20%
B.28%
C.30%
D.35%

Solution:- Selling price = Marked price × (100% – %)/100 × (100% – %)/100 × (100% – %)/100× ……….
= 100 × (100% – 10%)/100 × (100% – 30%)/100
= 100 × 90/100 × 70/100
= 63
100% – 63%
Ans. 37%

Q.5 Which is the discount equivalent to 20% and 40% successive discount?
A.38
B.52
C.60
D.84

Solution:- Selling price = Marked price × (100% – %)/100 × (100% – %)/100 × (100% – %)/100× ……….
Selling Price = Marked Price × (100% – 20%) / 100 × (100% – 40%)
= (80 × 60) / 100
= 48
= 100 – 48
Ans. 52

Q.6 Which is the discount equivalent to 20%, 25% and 10% sequential discount?
A.40
B.46
C.72
D.84

Solution:- Selling price = Marked price × (100% – %)/100 × (100% – %)/100 × (100% – %)/100× ……….
= (80 × 75 × 90) / 100 × 100
= 54
= 100 – 54
Ans. 46

Q.7 Which is the discount equivalent to 20%, 15% sequential discount?
A.10%
B.40%
C.32%
D.35%

Solution:- Selling price = Marked price × (100% – %)/100 × (100% – %)/100 × (100% – %)/100× ………
= (80 × 85) 100
= 68
100 – 68
Ans. 32%

Q.8 The marked price of an article is Rs 100, if it is sold at two successive discounts of 20%, 40%, then what will be its selling price?
A. 20 rupees
B.30 rupees
C.48 rupees
D.50 rupees

Solution:- Selling price = Marked price × (100% – %)/100 × (100% – %)/100 × (100% – %)/100× ………
= 100 × (100% – 20%)/100 × (100% – 40%)/100
= 100 × 80/100 × 60/100
Ans. 48 rupees.

Q.9 If an item is sold at successive discounts of 20% and 40%, its selling price is Rs 48, then what will be its marked price?
A. 200 rupees
B.100 rupees
C.400 rupees
D. Rs 250

Solution:- Marked price = Selling price × 100/(100%-%)× 100/(100-%) 100/(100%-%)…………..
= 48 × 100/80 × 100/60
Ans. 100 rupees.

FAQ

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Simplification	Profit and Loss
Simple Interest	Compound Interest

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