Discount

**Marked price: **The price printed on an article or on a tag tied to it or the advertised price or the listed (catalogued) price is called the **marked price**, abbreviated as M.P. of the article.

**Discount: **In order to give a boost to the sale of an item or to clear the old stock, articles are sold at reduced prices. This reduction is given on the marked price of the article and is called **discount**. Simply, the reduction made on the marked price of an article is called discount.

**Net price (or Selling price): **The price of an article after deducting discount from the marked price is called the net price of the article.

**Note: **Discount is always reckoned on the marked price and normally offered as a percentage.

Important Formulae |

The following formulae are generally used in solving the problems on discount. |

• S.P. = M.P. – Discount. |

• Discount = M.P. – S.P. |

• Discount% = . |

• If discount is d%, then S.P. = . |

**Ex: ** |
The M.P. of a ceiling fan is Rs. 950 and the shopkeeper allows a discount of Rs. 200 on it. Find its S.P. |

**Sol: ** |
Given that: M.P. = 950 and discount = 200. We know that: S.P. = M.P. – discount. Therefore,
∴ Selling price of a ceiling fan = Rs. 750. |