Question

State whether the statement is true (T) or false (F).

A discount is a reduction given on the cost price of an article.

• A. True
• B. False

Answer 1

The correct option is B False

Discount Rate

The discount rate is the price of the total quantity/amount usually less than its original value.

• Marked price is the cost set by the seller as per the market standard and selling price is the price at which the product or commodity has been sold.
• When the selling price is less than the marked price, then the buyer has said to be got some discount on it.
• The discount rate is the annualized percentage of the above discount, which is a percentage adjusted, to give an annual percentage.

Discount = Marked price – Selling price

Where

• M.P(Marked Price) is the actual price of the product without discount.
• S.P(Selling Price) is what customers pay for the product.
• A discount is a percentage of the marked price.