Discount and

Mark-Up
Discount
 Definition of Terms
• Discount(D)
–Is the reduction on the selling
price offered to a buyer.
• Discount Rate(R)
–Is a % which will be removed
from the original price.
• Original Price (O)
–Is the price of an item
–It is also called the LIST PRICE,
MARKED PRICE or TAG PRICE.
• Selling Price (P)
–Is the final amount to be paid by
subtracting the discount from the
original price
–It is also known as the NET PRICE or
SALE PRICE.
FORMULAS for DISCOUNT

•1)  D = O x R 1) O =

2) O = D ÷ R 2) S = O - D

3) R = D ÷ O
EXAMPLES
 save

Solution:
What is missing? DISCOUNT (D)
Given: ORIGINAL PRICE = $1500
RATE =10%
Formula: D = O x R
Solve: D = 1500 x 10%= 1500 x 0.10 = 150
Answer: D = $150.00
•Solution:
 
What is missing? ORIGINAL PRICE (O)
Given: SELLING PRICE = $1200
RATE =20%
Formula: O =
•Solve:
  O=

= 1200 = 1200
1 – 0.20 0.80
= 0.8 1200 8 12000

= 1500
Answer: O = $1500.00
Solution:
What is missing? SELLING PRICE (S)
Given: ORIGINAL PRICE = $1.25 & RATE =20%
Formula: S = O – D and D = O x R
Solve: D = 1.25 x 20%= 1.25 x 0.2 = 0.25
S = 1.25 – 0.25= 1.00

Answer: D = $1.00
•Solution:
 
What is missing? DISCOUNT RATE (R)
Given: ORIGINAL PRICE = $500
SELLING PRICE = $450
Formula: D = O - S and R = D O
Solve: D = 500 – 450 = 50
R = 50 500 = 10 %

Answer: R= 10%
Mark -up
 Definition of Terms
• Mark-up (M)
–Is the price which will be
added to the price of an item
• Mark-up Rate(R)
–Is a % which will be added
from the original price.
• Original Price (O)
–Is the price of an item
–It is also called the LIST PRICE,
MARKED PRICE or TAG PRICE.
• Selling Price (P)
–Is the final amount to be paid by adding
mark-up from the original price
–It is also known as the NET PRICE or
SALE PRICE.
FORMULAS for MARK-UP

•1)  M = O x R 1) O =

2) O= M ÷ R 2) S = O + M

3) R = M ÷ O
EXAMPLES
 A department store purchases a coat for $75. To make a profit,
the price is increased by 133%. What is the new price of the
coat?

Solution:
What is missing? SELLING PRICE (S)
Given: ORIGINAL PRICE = $75 & RATE =133%
Formula: M = O x R
S=O+M
Solve: M = 75 x 133%= 75 x 1.33 = 99.75
S = 75 + 99.75= 174.75

Answer: D = $174.75
 A boat is marked up 20% on the original price. The original price was
$50. How much gain will they get?

Solution:
What is missing? MARK-UP (M)
Given: ORIGINAL PRICE = $50
RATE =20%
Formula: M = O x R
Solve: M = 50 x 20%= 50 x 0.20 = 10
Answer: D = $10.00