Question

Discounts and markups?

What are they? How do you do em?

Answer 1

See below!

Explanation:

Discounts:
Discounts mostly used by stores so that we can buy their products. Like you might see a sign that says,"15% Off of All Items!". To find out if it is a good deal or not, we calculate how much we'll save. It's just like calculating tax, but instead of confusing you more, lets just get to the examples...

A new pair of sunglasses cost $10 But then you see a sign that says "25% Off All Items".

Step 1: Change the percent to a decimal
`25%=0.25`

Step 2: Multiply the decimal by the original amount to get the discount (the discount is the money that we save)
`0.25times$10=$2.5`

Step 3: Subtract the discount from the original price
`$10-2.5=7.5`

The new price of the sunglasses is $7.50!

Markups:
Well, if stores offer discount all the time, they'll run out of business! So that's why once in a while they increase the price. They're called markups. We do the same steps as the discount but only Step 3 changes. Instead of subtracting, we add. Lets see the example...

You want to buy this AWESOME game for your Xbox. Once you get to the shop, you see that there's a markup of 20%. What is the new price of the game?

Step 1: Change the percent discount to a decimal
`20%=0.20`

Step 2: Multiply the decimal by he original cost (this is the markup)
`0.20times$40-$8`

Step 3: Add the markup price to the original cost
`$40+$8=$48`

The new price of the board game is $48!

I hope that this answer help the ones who need it! My source is my mind! :)

Answer 2

See explanation below.

Explanation:

As an example, let's say that the price of some object is `$100`.

A "discount" is an amount that is taken off, or "discounted", from the price of some good or service.

Now, if there is a `25%` discount on the `$100` object, it will mean that `25%` of `$100` will be taken off from the `$100` price.

`Rightarrow "Discount amount" = $100 times 0.25 = $25`

Therefore, after a `25%` discount, the price of the object becomes `$75`.

"Mark-ups", which are amounts added to the price, can be worked out in the same way as discounts.

If there were a `50%` mark-up added to the price, `50%` of `$100` would be added to the `$100` price.

`Rightarrow "Mark-up amount" = $100 times 0.50 = $50`

So, the final price of the object would become `$150`.