Understanding sale prices and savings
A discount is a reduction from the original price, usually expressed as a percentage. Understanding how discounts are calculated helps you make smarter shopping decisions and spot deals that aren't as good as they appear. Discount formula: Discounted Price = Original Price × (1 - Discount% / 100). For example, a $80 item with 25% off: $80 × 0.75 = $60. Stacked discounts: When two discounts are applied (e.g., 20% off, then an extra 10% off), they are NOT added together. A 20% + 10% discount is not 30% off — it's actually 28% off. The second discount applies to the already-reduced price. Original price from discounted price: If you know the sale price and discount rate, you can find the original: Original = Sale Price ÷ (1 - Discount% / 100). Watch out for: Stores that inflate the 'original' price before applying a discount to make savings look larger. Always compare the final price to market value, not just the advertised savings percentage.
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To calculate discounted price, subtract the discount amount from the original price. Discount Amount = Original Price × (Discount Rate ÷ 100). For example: $1000 with 20% discount = 1000 - (1000 × 0.20) = $800
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Find answers to common questions
To calculate discounted price, subtract the discount amount from the original price. Discount Amount = Original Price × (Discount Rate ÷ 100). For example: $1000 with 20% discount = 1000 - (1000 × 0.20) = $800