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Calculating Discounts

Discount Formula:

\[ \text{Discounted Price} = \text{Original Price} \times (1 - \text{Discount \%}) \]

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1. What is Discount Calculation?

Discount calculation determines the final price after applying a percentage reduction to the original price. It's commonly used in retail, sales, and financial transactions to show price reductions to customers.

2. How Does the Calculator Work?

The calculator uses the discount formula:

\[ \text{Discounted Price} = \text{Original Price} \times (1 - \text{Discount \%}) \]

Where:

Explanation: The formula calculates the remaining percentage of the original price after subtracting the discount percentage.

3. Importance of Discount Calculation

Details: Accurate discount calculation is essential for businesses to maintain profit margins, for consumers to understand savings, and for financial planning in both personal and commercial contexts.

4. Using the Calculator

Tips: Enter the original price in dollars and the discount percentage (0-100). Both values must be positive numbers with discount percentage not exceeding 100%.

5. Frequently Asked Questions (FAQ)

Q1: How do I calculate a 20% discount?
A: Multiply the original price by 0.80 (1 - 0.20). For $100 item: $100 × 0.80 = $80.

Q2: What's the difference between discount percentage and discount amount?
A: Percentage is the relative reduction (e.g., 20%), while amount is the absolute dollar value subtracted (e.g., $20 off $100).

Q3: How do I calculate the original price from discounted price?
A: Original Price = Discounted Price / (1 - Discount %). If discounted to $80 at 20% off: $80 / 0.80 = $100.

Q4: Can discounts be stacked?
A: Sequential discounts multiply (e.g., 20% then 10% isn't 30% but 1-(0.8×0.9)=28% total discount).

Q5: Why do some discounts appear different than calculated?
A: Some retailers apply discounts to pre-discount prices, exclude certain items, or round amounts differently.

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