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.

## Nancy Muringo

Nice to know!!