Discounts and Markups

Front

What is a discount?

Back

A discount is a reduction in the price of a product or service, usually expressed as a percentage of the original price.

Front

How do you calculate the amount saved from a discount?

Back

To calculate the amount saved from a discount, multiply the original price by the discount percentage (in decimal form).

Front

If an item costs $50 and has a 20% discount, how much do you save?

Back

You save $10.

Front

What is a markup?

Back

A markup is an increase in the price of a product or service, usually expressed as a percentage of the cost price.

Front

How do you calculate the selling price after a markup?

Back

To calculate the selling price after a markup, add the markup amount to the original cost price.

Front

If a product costs $30 and has a 25% markup, what is the selling price?

Back

The selling price is $37.50.

Front

What is sales tax?

Back

Sales tax is a percentage added to the price of goods and services, collected by the seller and paid to the government.

Front

How do you calculate the total price including sales tax?

Back

To calculate the total price including sales tax, multiply the original price by the sales tax rate (in decimal form) and add it to the original price.

Front

If a meal costs $40 and the sales tax is 8%, what is the total cost?

Back

The total cost is $43.20.

Front

What is the formula for calculating the discount price?

Back

Discount Price = Original Price - (Original Price x Discount Percentage).