LEARN MATH STEP BY STEP THROUGH VERY EASY PROCESS

CONCEPT OF DISCOUNT

__DISCOUNTS__

**Sometimes any shop keepers, organization or merchandise to
create more sells, at the time of festivals or for the purpose of old stock
clearance. We say that things are being sold at a discount.**

**Marked Price –**

**Please try to remember that, the marked price (MP) or listed price of an article is the
price printed on the article itself or on the packaging or a slip attached to
the articles and this marked price is also considered as market retail price or MRP. In general, the dealer sells articles or goods to the buyer at this
price.**

**Discounts –**

**When a dealer sells an article for a price that is lower
than the marked price or printed price, the difference between the marked price
(MP) or printed price and the selling price (SP) is called a discount. **

** Discount =
Marked Price (MP) – Sell Price (SP),**

**Or, Sell Price (SP)
= Marked Price (MP) – Discounts,**

**Or, Marked Price
(MP) = Discounts + Sell Price (SP)**

**Discount may be offered as a sum of money or a percentage of
the marked price (MP), if a dealer allows a discount of a% on the marked price
(MP) or printed price.**** **

** SP = MP –
Discount = MP – a% of MP **

**a**

** = MP - --------
X MP**** **

** 100**

** a**

** So, SP = ( 1 - -------- ) X MP**

** 100 **

**Sometimes a dealer allows a discount of a1% on the marked or
printed price and then a2% on the reduced price. We say that successive
discounts of a1% and a2% are available and the selling price (SP) is calculated by
the following formula –**

** a1 a2**

** SP = ( 1
- -------- ) ( 1 - --------- ) X MP**

** 100 100 **