Question 1

How do you calculate a percentage discount?

Accepted Answer

To calculate a percentage discount, multiply the original price by the discount percentage divided by 100. For example, a 25% discount on a $80 item is $80 × 0.25 = $20 off. The sale price is then $80 − $20 = $60. Alternatively, multiply the original price by (1 − discount rate): $80 × 0.75 = $60.

Question 2

What is the difference between original price and sale price?

Accepted Answer

The original price (also called the list price or retail price) is the full price of an item before any discount is applied. The sale price is the reduced price after the discount has been subtracted. The difference between the two is the discount amount, which can also be expressed as a percentage of the original price to get the discount rate.

Question 3

How do you calculate the percentage savings on a purchase?

Accepted Answer

To calculate percentage savings, subtract the sale price from the original price to get the amount saved, then divide that by the original price and multiply by 100. Formula: ((Original Price − Sale Price) / Original Price) × 100. For example, if an item was $50 and is now $35, the savings are ($50 − $35) / $50 × 100 = 30%.

Question 4

How do you find the original price if you know the sale price and discount percentage?

Accepted Answer

To find the original price from the sale price and discount percentage, divide the sale price by (1 − discount rate). Formula: Original Price = Sale Price / (1 − Discount%). For example, if an item is on sale for $60 after a 25% discount, the original price is $60 / (1 − 0.25) = $60 / 0.75 = $80.

Question 5

Do stacked discounts add up? Is 20% off plus 10% off the same as 30% off?

Accepted Answer

No, stacked discounts do not simply add together. A 20% discount followed by an additional 10% discount is not the same as 30% off. Each discount is applied sequentially to the reduced price. On a $100 item: 20% off gives $80, then 10% off $80 gives $72. The total saving is $28, which equals a combined 28% discount — not 30%. The formula for combined discount is: 1 − (1 − d1) × (1 − d2).

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