Discount

Discount is the reduced price or amount of value at a given rate. In other words, you are not
including a portion of that payment from what you are supposed to pay. To compute the
discount, we need the original price and the rate of discount.

To compute for the discount, we need to use these formulas:

Discount = Original Price×Discount Rate (%)

Sale Price = Original Price - Discount

To compute for the discount rate:

Discount
Discount Rate (%) = × 100
Original Price

Here are some real-life problems where you can apply the concept of discount.

1. Suppose you are to buy a bag that costs PhP 640 but has a discount rate of 60% off from
12 MN - 2 AM, how much will be the sale price of the bag?

You can solve this using Polya’s 4-step method:

I. What is being asked? The amount you will pay for the bag.

What are the given facts? Cost of the bag is PhP 640; 60% off

II. What is the number sentence? Sale Price = 640 - (640×0.6)

What operations are to be performed? Subtraction and Multiplication

III. Solution:

Sale Price = Original Price - Discount Given Formula

= 640 - (640 × 0.6) Substitution

1
 = 640 - 384 Solution

Sale Price = PhP 256 Answer

IV. Final Answer: The sale price of the bag after discount is PhP 256.

2. You bought a pair of jeans which originally cost PhP 1550, but you only paid for its sale
price at PhP 1162.50. What is the discount rate?

I. What is being asked? The value of the discount rate.

What are the given facts? Cost of the jeans is PhP 1150; Sale Price at PhP 1162.50

1150−1162.50
II. What is the number sentence? Discount Rate = × 100
1150

What operations are to be performed? Subtraction, Multiplication, & Division

III. Solution:

Discount
Discount Rate = × 100 Given Formula
Original Price

1150−1162.50
= ×100 Substitution
1150

387.5
= × 100 Solution
1150

1
= = 0.25 ×100
4

Discount Rate = 25% Answer

IV. Final Answer: The discount rate of a pair of jeans is 25%.

2
Markup
Markup is the added price or amount of value at a given rate. In other words, you are including an
additional percent of a portion of your payment. To compute the markup, we need the original
price and the rate of markup.

To compute for the amount of markup, we need to use these formulas:

Amount of Markup = Wholesale Price × Markup Rate (%)

Selling Price = Wholesale Price + Amount of Markup

To compute for the markup rate:

Markup
Markup Rate (%) = × 100
Wholesale Price

Here are some real-life problems where you can apply the concept of markup.

1. You bought a bag which costs PhP 640 that has a discount rate of 60% off and pays the
sale price at PhP 256. Suppose you are to sell this bag using the original price at a
markup rate of 15%. What is the new selling price and how much did you earn from selling
the bag?

I. What is/are being asked? New selling price and earning from selling the bag.

What are the given facts? Cost of the bag is PhP 640 ; an additional 15% from the
original price.

II. What is/are the number sentence?

Selling Price = 640 + (640 × 0.15)

Earning = (640 + (640 × 0.15)) - 256

What are the operations to be performed? Addition, Subtraction, & Multiplication

III. Solution:

Selling Price = Wholesale Price + Markup Given Formula

= 640 + (640 × 0.15) Substitution

3
 = 640 + 96 Solution

Selling Price = PhP 736 Answer

Earning = Selling Price - Sale Price Given Formula

= 736 - 256 Substitution / Solution

Earning = PhP 480 Answer

IV. Since the selling price is Php 736, you will earn Php 480 based on the original
price.

2. Franz’s art gallery bought the artwork for a wholesale price of PhP 4,000. Franz marked
the price up for 40%. Find the markup amount and the selling price of the artwork.

I. What is/are being asked? Markup amount and selling price of the artwork.

What are the given facts? Wholesale price of PhP 4,000 ; Markup rate at 40%

II. What is/are the number sentence?

Markup Amount = 4000×0.4

Selling Price = 4000 + (4000×0.4)

What are the operations to be performed? Addition & Multiplication

III. Solution:

Markup Amount = Wholesale Price ∗Markup Rate Given Formula

= 4000×0.4 Substitution / Solution

= 1600 Answer

Selling Price = Wholesale Price + Markup Amount Given Formula

= 4000 + 1600 Substitution / Solution

= 5600 Answer

IV. The markup amount and selling price of the artwork are PhP 1600 and PhP 5600,
respectively.