Prior to discussing how to calculate discount, let us define what it is. Discount is the amount deducted from the usual price/cost of something. It’s usually stated as a percentage off of the original price.
Given the original price of something and the percentage discount(discount rate), we can calculate the discount amount.
Example
There’s a 20% discount on a bottle of wine that normally retails for Ksh 1000/= at Carrefour Supermarket chains. What is the discount amount?
Since we have the original price (Ksh 1000) and the discount rate(discount as a percentage), we can easily calculate the discount amount in Shillings. This easily tell you how much you’ll be saving and how much you’ll actually pay for the bottle of wine!
Formula to Calculate Discount.
Discount = (Original Price) x (Discount Rate)
Therefore Ksh 200 is the discount amount. That means you’ll pay Ksh 200 less of the original amount. (1000-200 = 800)
Example 2:
Suppose there is a 17% discount on a couch that you’ve had your eye on. If the original price of the couch is $2000, find the value of the discount.
Discount = (Original Price) x (Discount Rate)
= 2,000 x 17%
= 340
Therefore, the discount amount is $340.
