How do you apply a discount to a price?

Unlocking Savings: A Simple Guide to Applying Discounts

Discounts – the magic words that transform a shopping trip from a necessary expense into a rewarding experience. But how exactly do those percentage reductions translate into actual savings in your wallet? Understanding the process is easier than you might think. Let’s break down the straightforward calculation behind applying discounts to prices.

The key to understanding discount application lies in converting percentages into a format your calculator can easily handle: decimals. Think of a percentage as simply a fraction out of 100. For example, 25% represents 25/100. To convert this percentage to a decimal, we simply divide the percentage by 100. So, 25% becomes 0.25. Similarly, 15% becomes 0.15, and 5% becomes 0.05.

Now, let’s apply this to a real-world example. Imagine you’re buying a sweater priced at $50, and it’s currently on sale with a 20% discount. Here’s the step-by-step process:

Step 1: Convert the percentage to a decimal.

20% divided by 100 equals 0.20.

Step 2: Calculate the discount amount.

Multiply the original price by the decimal equivalent of the discount percentage. In this case:

$50 (original price) x 0.20 (discount) = $10 (discount amount)

Step 3: Determine the final discounted price.

Subtract the discount amount from the original price.

$50 (original price) – $10 (discount) = $40 (final price)

Therefore, the sweater, originally priced at $50, will cost you $40 after applying the 20% discount.

Beyond the Basics: Handling Multiple Discounts and Complex Scenarios

While the above method works perfectly for single discounts, situations involving multiple discounts or more complex pricing structures require a slightly different approach. For instance, if a store offers a 10% discount followed by an additional 5% discount for loyalty members, you must apply the discounts sequentially. First, calculate the price after the 10% discount, and then apply the 5% discount to the new price, not the original. This prevents simply adding the percentages together (10% + 5% = 15%), which would result in an inaccurate final price.

In conclusion, applying discounts is a simple mathematical process. By understanding the conversion of percentages to decimals and applying the simple steps outlined above, you can confidently calculate your savings and make informed purchasing decisions, ensuring you always get the best possible deal. Remember to always double-check your calculations to avoid any unexpected surprises at the checkout!