Discount Formula and Discount Percentage Formula with Examples

Discount refers to the condition of the price of a bond that is lower than the face value. The discount equals the difference between the price paid for and it’s par value.

Discount is a kind of reduction or deduction in the cost price of a product. It is mostly used in consumer transactions, where people are provided with discounts on various products. The discount rate is given in percentage.

\begin{array}{l} D i s c o u n t = L i s t P r i c e - S e l l i n g P r i c e \end{array}

\begin{array}{l} T h e r e f o r e, \end{array}

\begin{array}{l} S e l l i n g P r i c e = L i s t P r i c e - D i s c o u n t \end{array}

\begin{array}{l} L i s t P r i c e = S e l l i n g P r i c e + D i s c o u n t \end{array}

Discount Percentage Formula

\begin{array}{l} R a t e o f D i s c o u n t = D i s c o u n t % = \frac{D i s c o u n t}{L i s t P r i c e} \times 100 \end{array}

\begin{array}{l} S e l l i n g P r i c e = L i s t P r i c e (\frac{100 - d i s c o u n t %}{100}) \end{array}

\begin{array}{l} L i s t P r i c e = S e l l i n g P r i c e (\frac{100}{100 - d i s c o u n t %}) \end{array}

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