Discount Formulas with Question and Answers Examples

Discount Formulas with Question and Answers-Full set of all formulas: Recently we have discussed about Profit and Loss shortcut formulas and questions, this time we will be discussing discount formulas and questions with answers
What is discount?
Discount is a rebate which the shopkeeper gives to their customers on selling some goods.
Note: Discount is always calculated on Print Rate (PR)
Here are some important rules and facts of discounts.
·         Selling price (SP)= Print rate – Discount


·         If the rate of discount is r%, then
SP= PR*{(100-r)/100}

·         If a shopkeeper wants to make a profit of R% and also gives discount of r%, then
PR= CP*{(100+R)/(100-r)}            where CP= Cost Price

·         If an item is sold on consecutive discounts of r1 %, r2 %, r3 %, then
SP= PR[{(100-r1)/100}{(100-r2)/100}{(100-r3)/100}]
And if SP of the price is given then
PR= CP{(100*100*100)/(100-r1)(100-r2)(100-r3)}

·         If a shopkeeper wants to make a profit of R% and also gives discount of r%, then that shopkeeper should write PR more than the CP by [100(r+R)/(100-r)]

·         If on selling an item, there are two discounts of r% and R% given on the item, then SP of the item should be      
SP= PR[{(100-r)/100}{(100-R)/100}]

· If there are two discounts on an item of r% and R%, then equivalent discount to both of these discounts will be = {r+R-(rR/100)}
Example:1
A shopkeeper has an item which has a print rate of 3500. The shopkeeper sold that item with 40% profit after giving a discount of 20%, find the CP of the item?
Solution:
Now r= 20%
and        R=40%
PR= 3500
Now formula for CP
CP= PR[(100-r)/(100+R)]
CP= 3500[(100-20)/(100+40)]
CP= (3500*80)/140
CP= 2000


Example:2
Find the equivalent discount (ED) to consecutive discounts of 20% and 30%.
Solution:
ED= r+R-(rR/100)              %
ED= 20+30-{(20*30)/100}              %
ED= 50-6=44 %
Hope you understand all the formulas given above and can solve the discount problems better.

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