selling price 950 pesos rate of discount 20% discount sale price
The Correct Answer and Explanation is:
Correct Answer:
The discount sale price is 760 pesos.
Explanation:
To find the sale price when a discount is given, begin by calculating the amount of the discount. The discount is found by multiplying the original selling price by the rate of discount. In this case, the selling price is 950 pesos, and the discount rate is 20%.
Calculate the discount amount:
20% of 950 pesos = (20 ÷ 100) × 950 = 0.20 × 950 = 190 pesos
This value represents how much is subtracted from the original price to determine the sale price.
Next, subtract the discount from the original selling price to find the final price paid after the discount.
950 pesos − 190 pesos = 760 pesos
This is the sale price after applying the 20% discount.
Using this method ensures clarity in calculating discounts. Businesses often provide discounts as a percentage of the original price to encourage sales or promote products. The percentage is always applied to the full selling price, and the resulting amount is taken off to give the customer a lower, more attractive price.
The process remains consistent regardless of the currency or rate involved. First, compute the discount by multiplying the selling price by the discount rate (expressed as a decimal), then subtract that discount from the original price to find the sale price.
This concept is also valuable for understanding markdowns in retail, managing budgets, and making informed purchasing decisions. By knowing how to compute the discount and sale price, shoppers and sellers alike can evaluate offers and set prices that reflect accurate savings or profits.
