#### Explanation:

Formula is $D = P \cdot R$

Where:
$D$ = Discount Price
$P$ = Original Price
$R$ = Rate of Discount

Plugging All the Values:

We need to convert the 10% (Percentage to Decimal), Just simply remove the percentage sign then divide by 100. We get 10/100 = 0.10 or 0.1

$D = 7.94 \cdot 0.10$

$D = 0.794$

$D i s c o u n t e d P r i c e$ = Original Price - Discount Price

Discounted Price = 7.94 - 0.794

= $$7.164$Apr 14, 2016 $7.15

#### Explanation:

10% is just another way of writing $\frac{10}{100}$

Considering the question a bit at a time

10% of $7.94 is $\frac{10}{100} \times 7.94 = 0.794 \text{ }$( in dollars) So the price after reduction is $(7.94 - 0.794) = $7.146 Rounding this to 2 decimal places gives " "$7.15
'~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Doing the whole thing in one go:

" "$7.94(1-10/100)=$7.146