Percentage in business

1. NADEEM UDDIN
ASSOCIATE PROFESSOR
OF STATISTICS
https://www.slideshare.net/NadeemUddin17
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2. Discount:
Reduction in stated price of an item from seller.
SP = Stated price
AD = Amount of discount
DR = Discount rate
DP = Discounted price
Where
DP = SP – AD
Or
DP = SP ( 1 – DR )
DR =
𝐴𝐷
𝑆𝑃
∗ 100

3. Example-1
The price of a chair is Rs. 1000,find the discounted price if the
discount rate is 5%.
Solution:
Given information
SP = Rs. 1000
DR = 5% = 0.05
DP = ?
DP = SP ( 1 – DR )
DP = 1000 ( 1 – 0.05 )
DP = 1000 ( 0.95 )
DP = Rs.9 5 0

4. Example-2
The price of a chair is Rs.1000 is available at discount of Rs.50
,find the discounted price and the discount rate .
Solution:
Given information
SP = Rs. 1000
AD = Rs.50
DP = ?
DR = ?
DP = SP – AD
DP = 1000 – 50
DP = Rs.9 5 0

5. Now find
DR =
𝐴𝐷
𝑆𝑃
∗ 100
DR =
50
1000
∗ 100
DR = 5%

6. Example-3
A customer received a discount of 5% on the book value of a
chair and paid Rs.950,What was the book value of the chair.
Solution:
Given information
SP = ?
DP = Rs 950
DR = 5% = 0.05
SP =
𝐷𝑃
( 1−𝐷𝑅 )
SP =
950
( 1−0.05 )
SP =
950
0.95
SP = Rs.1000

7. Example-4
The market price of a chair is Rs.1000 if the customer got two
consecutive discount 5% and an additional discount 4%. Find the final
value (Discounted price).
Solution:
Given information
SP = 1000
DR1 = 5% = 0.05
DR2 = 4% = 0.04
DP = SP ( 1 - DR1 ) ( 1 - DR2 )
DP = 1000 ( 1 – 0.05 ) ( 1 – 0.04 )
DP = 1000 ( 0.95 ) ( 0.96 )
DP = Rs.912

8. DO YOURSELF
Q.1 An item with price of Rs.2000 is available at 12% discount.
Find the discounted price and amount of discount.
( Ans: DP = 1760 and AD = 240)
Q.2 A shopkeeper gave 7
1
2
% discount to customer on a mobile, if
the customer paid Rs.32375 for this mobile. Find the face value
of the mobile.(Ans:35000)
Q.3 A mobile shopkeeper offered 7.5% discount to a customer, find
the discounted price and actual price of the mobile if the
discount allowed was Rs.2625.
(Ans: DP = 32375 and Actual price = 35000)