Business Valuation For Dummies
Book image
Explore Book Buy On Amazon

You can use subtraction to calculate a percentage discount. In fact, when you hear the words discount or sale price, you should automatically think of subtraction. Here’s an example:

Greg has his eye on a television with a listed price of $2,100. The salesman offers him a 30% discount if he buys it today. What will the television cost with the discount?

In this problem, you need to realize that the discount lowers the price of the television, so you have to subtract:

Sale price = 100% of regular price – 30% of regular price

Now subtract percentages:

Sale price = (100% – 30%) of regular price = 70% of regular price

At this point, you can fill in the details, as follows:

Sale price = 0.7 x $2,100 = $1,470

Thus, the television will cost $1,470 with the discount.

About This Article

This article is from the book:

About the book authors:

Lisa Holton is a former business editor and reporter for the Chicago Sun-Times. Today, she heads The Lisa Company, a writing, editing, and research firm. She's a writer for corporations, colleges, and nonprofits nationwide, and has written more than 13 books. Jim Bates is vice president, transaction support for the Christman Group, a middle-market investment banking firm based in Palatine, Illinois.

This article can be found in the category: