Question

Define discount percentage with respect to marked price.

Answer 1

Hint: Discount is a rebate on the marked price of the article given by the shopkeeper. So, discount percentage can be calculated by multiplying the ratio of discount given on an article by a shopkeeper to the marked price of an article marked by a shopkeeper with$100$.

Complete step by step solution:
Marked Price: In big shops and departmental stores, every article is tagged with a card and its price is written on it. This is called the marked price of that article, abbreviated as MP. For books the printed price is the marked price.

List Price: Items which are manufactured in a factory are marked with a price according to the list supplied by the factory, at which the retailer is supposed to sell them. This price is known as the list price of the article.

Discount is defined as the amount of rebate given on the marked price of an article.
It is given by merchants / shopkeepers for attracting customers in order to increase their sales.
\[Selling{\text{ }}price = \left( {marked{\text{ }}price} \right)-\left( {discount} \right)\]

Note: Discount percentage or discount is always given on the marked price of an article. So, there is no role of selling price and cost price. But profit and loss percentage is always calculated on cost price. Hence, students must be very careful regarding the term discount percentage and profit, loss percentage. As, they might get confused in bo