SOUTHERNSIDE MONTESSORI SCHOOL

Camella Homes IV, Poblacion, Muntinlupa City

SENIOR HIGH SCHOOL

Accountancy, Business, and Management
APPLIED & SPECIALIZED SUBJECT: BUSINESS MATH
SY 2023 – 2024

CHAPTER 3 : BUYING AND SELLING

Lesson #2 ( 2nd Quarter )
Topic : Discount Series

Objectives : a. determine the new cost of a product after giving series of discounts,
b. compute for the equivalent single discount rate of discount series , and
c. compare the savings from a single discount rate and savings from a discount
series.

Suppose two or more discount are offered on the same product , how do we
solve its net price? Let us consider the problem below:

“ An appliance store offers a refrigerator at Php 14 000 with discount

of 25% and 15%. How much does a refrigerator cost?”

Given :

Original Price : Php 14 000

Discount Rates : 25% and 15%
Cost of refrigerator : ______

1st Solution :

1st : We first apply the first discount rate to the original price and subtract
the discount obtained from the list price :

Php 14 000 – 25%(14 000)

14 000 – 0.25 ( 14 000) = Php 10 500

2nd : Then apply the second discount rate on the first discounted price
and subtract the discount obtained :

Php 10 500 – 15% ( 10 500 )

10 500 – 0.15 ( 10 500 ) = Php 8 925

Therefore : The cost of the refrigerator given in a series of discounts 25%

and 15% is Php 8 925
2nd Solution :
Using the Single Discount Rate ( Equivalent of the Discount Rates )

We obtain first the complements of percent and obtain their respective

decimal equivalent :

PERCENT GIVEN COMPLEMENT OF DECIMAL EQUIVALENT OF

PERCENT COMPLEMENT

25% 75% 0.75

15% 85% 0.85

1st : Multiply the decimal obtained and subtract the result from 1.
The result obtained is the single discount rate equivalent(in decimal)
of the given discount series.

1 – (0.75 ) ( 0.85 )
1 – 0.6375 = 0.3625 ( 36.25% )

2nd : Multiply the original price by he single discount rate equivalent and
subtract the result from the original price.

Php 14 000 – 0.3625 ( 14 000 )

14 000 – 5 075 = Php 8 925

3rd Solution :

Using the formula :

Net Price = ( 1 – d1) ( 1-d2) ( 1-d3) … ( Original Price )

Net Price = ( 1 – 25%) ( 1-15%) ( 14 000)

=( 1- 0.25 ) ( 1 – 0.15 ) ( 14 000 )
= ( 0.75 ) ( 0.85 ) ( 14 000 )

Net Price = Php 8 925

A type of discount in which several discounts are given to a customer at

different times and different conditions is called DISCOUNT SERIES .
DISCOUNT SERIES are given to a customer in order to encourage them to
purchase in volume. It is also effective in promoting seasonal items and to
entice new set of customers.
Example #1: A cellphone brand is subject to a series of discounts of 15% , 10%,
and 5%. If the net price is Php 5000, what is the list price
of the cellphone ?
Solution : using the formula

Net Price = ( 1 – d1 ) ( 1 – d2 ) ( 1 – d3 ) ( List Price )

Php 5 000= ( 1 – 15%) (1 – 10% ) ( 1 – 5 % ) ( List Price )
5 000= ( 0.85 ) ( 0.90 ) ( 0.95 ) ( List Price )
5000 = 0.72675 ( List Price )
Php 6879.94= List Price

Therefore : The estimated list price of the cellphone brand is Php 6879.94

Example #2 : Globemix is selling Green Chairs to Distributors and Sons. Instead

of giving a single trade discount , Globemix gives 3/4/5 trade
discount. Distributors and Sons bought 800 chairs originally
priced at Php 740 each.

a. Compute for the discounted unit price of Green Chair.

b. How much did Distributors and Sons pay for 800 chairs?
Solution :
Discounted Price = ( 1-3%)(1-4%)(1-5%)(740)
= (1- 0.03)(1- 0.04)(1 - 0.05)(740)
= (0.97)(0.96)(0.95)(740)
Discounted Price = Php 654.63

a. The discounted unit price of Green Chair is Php 654.63

Solution :
800 x Php 654.63 = Php 523 704

b. The price of 800 chairs is Php 523 704

Try this :
1. Which has a greater discount for an item worth Php 20 000, discounts of 20%,
15%, and 10% or discounts of 10%, 20%, and 15%. Justify your answer.

2. Which series will give a better discount 25% and 15% or 5% and 25%? Why?

3. France bought a pair of pants at Php 2500 and a pair of shoes at Php 4500.
If the department store offers a successive discounts of 8% and 5% to the
total purchase, how much should France pay?