# Discounts and markups?

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What are they? How do you do em?

What are they? How do you do em?

##### 2 Answers

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

Step 2: Multiply the decimal by the original amount to get the discount (the discount is the money that we save)

Step 3: Subtract the discount from the original price

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

Step 2: Multiply the decimal by he original cost (this is the markup)

Step 3: Add the markup price to the original cost

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! :)

See explanation below.

#### Explanation:

As an example, let's say that the price of some object is

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

Now, if there is a

Therefore, after a

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

If there were a

So, the final price of the object would become