How do you apply a discount amount?

Calculating Discounted Prices: A Simple Guide

Navigating sales and discounts can feel like a mathematical maze. But the process is surprisingly straightforward. This guide demystifies the calculation, showing you precisely how to apply a discount to any item.

The core principle is this: a discount represents a fraction of the original price. To find the final discounted price, we need to isolate this fraction, and then subtract it from the whole. Let’s break down the steps.

Step 1: Convert the Percentage to a Decimal

This crucial first step involves transforming the percentage representing the discount into a decimal. For instance, a 20% discount becomes 0.20. This conversion is vital for the subsequent calculation.

Step 2: Calculate the Discount Amount

Now, multiply the original price by the decimal representation of the discount percentage. If the original price is $100 and the discount is 20%, the calculation would be:

$100 * 0.20 = $20

This result, $20, represents the exact discount amount.

Step 3: Determine the Sale Price

Finally, subtract the calculated discount amount from the original price to get the sale price. Using our example:

$100 – $20 = $80

The sale price is $80.

Example Scenario: A $50 item with a 15% discount.

1. Convert the percentage to a decimal: 15% becomes 0.15.
2. Calculate the discount amount: $50 * 0.15 = $7.50
3. Determine the sale price: $50 – $7.50 = $42.50

Important Considerations:

• Handling Multiple Discounts: If there are multiple discounts, calculate each discount individually, and then subtract the total discount from the original price to get the final price.
• Tax Implications: Keep in mind that the sale price calculation above does not factor in sales tax. The final price may have tax added later.
• Mixed Percentage/Fixed Discount: If a discount is a combination of a percentage and a fixed amount, calculate the percentage discount first, and then subtract the fixed discount amount.

This clear and concise method allows for precise calculations of any discounted price, making shopping smarter and calculations simpler.