Discount

A discount is a reduction in the price of a product or service offered by a seller to encourage sales, attract customers, or reward loyalty. It is expressed as a percentage or a specific amount deducted from the original price.

Discounts can be calculated in several ways, depending on the context and the terms of the discount. Here are the common types of discounts and how they are calculated:

1. Percentage Discount:

- To calculate the discounted price after a percentage discount, multiply the original price by the percentage discount rate and subtract the result from the original price.

- Discounted Price = Original Price - (Original Price × Percentage Discount Rate)

2. Fixed Amount Discount:

- To calculate the discounted price after a fixed amount discount, subtract the fixed amount discount from the original price.

- Discounted Price = Original Price - Fixed Amount Discount

Discounts play a significant role in pricing strategies and marketing efforts to attract customers and increase sales. Understanding how discounts are calculated allows consumers to make informed purchasing decisions and take advantage of savings opportunities.