# Concept of Discount

In most cases, retailers cannot sell defective items, old items, etc. at the retail-selling price. If these items are sold at a lower price, then it is called a sale price.

$$\therefore $$** The difference between the marked price (selling price) and the sale price is called a discount.**

In other words, a reduction in the price of an article is called a discount.

Hence $$\boxed{{\text{Discount = Marked Price – Sale Price}}}$$

A discount is usually given as a percentage of the original price.

**Example:**

A watch priced at Rs.160 is sold for Rs.140. Find the percentage discount.

**Solution:**

Let Marked Price = Rs.160

Sale Price = Rs.140

Discount = Marked Price – Sale Price = 160 – 140 = Rs.20

Percentage Discount = $$\frac{{20}}{{160}}$$ x 100 = $$12\frac{1}{2}\% $$

**Example:**

The marked price of a washing machine is Rs.600. A discount of 6% is given during a sale. What is the sale price of the washing machine?

**Solution:**

Let Marked Price = Rs.600

Discount Rate = 6%

Discount = 6% of the marked price = $$\frac{6}{{100}}$$x 600 = Rs.36

$$\therefore $$ Sale Price = Marked Price – Discount = 600 – 36 = Rs.564