Question 1

How do I calculate a discount percentage?

Accepted Answer

To calculate the discounted price, multiply the original price by the discount percentage divided by 100, then subtract that from the original price. For example, 25% off $80: discount = $80 x 0.25 = $20, final price = $80 - $20 = $60.

Question 2

How do I calculate the original price from a sale price?

Accepted Answer

If you know the sale price and the discount percentage, divide the sale price by (1 - discount/100). For example, if an item is $60 after a 25% discount: original price = $60 / (1 - 0.25) = $60 / 0.75 = $80.

Question 3

How do stacked discounts work?

Accepted Answer

When multiple discounts are stacked (e.g., 20% off then an additional 10% off), they are applied sequentially, not added together. A 20% + 10% discount is not 30% off. Instead: after 20% off $100 = $80, then 10% off $80 = $72. The effective discount is 28%, not 30%.

Question 4

What is the difference between markup and discount?

Accepted Answer

A discount reduces the price from the original, while markup increases it. They are not exact inverses. A 50% markup on $100 gives $150, but a 50% discount on $150 gives $75, not $100. To reverse a 50% markup, you need a 33.3% discount.

Question 5

How do I know if a sale is actually a good deal?

Accepted Answer

Compare the sale price to prices at other retailers, check price history using tools like CamelCamelCamel (for Amazon), and consider the per-unit cost for bulk deals. A high discount percentage does not always mean a great deal if the original price was inflated.

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