Calculating Marked Price and Discount Rate in a Computer Sale
What is the meaning of "marked price" in a sale?
Choose the correct answer:
a. $1,270; 8.9%
b. $1,518; 8.9%
c. $1,270; 9.79%
d. $1,518; 8.2%
Explanation:
The marked price or list price is the amount that is stated on a product's label. This is the initial asking price at which the product will be made available for purchase. The actual selling price of the goods could be less than this amount. Typically, MP is used to indicate it.
Calculating Marked Price and Discount Rate:
In this scenario, the marked price (original price) of the computer is $1,518, and the discount rate is 8.9%.
Formula:
The percent markdown can be calculated using the formula: (Discount amount/Selling price) * 100.
Calculation:
Original Price - Discount Price = Discount Amount
Marked Price - Sale Price = Discount Amount
$1518 - $1394 = $124
Discount Rate = (Discount Amount/Sale Price) * 100
($124/$1394) * 100 ≈ 8.9%
Conclusion:
Therefore, the marked price of the computer is $1,518, and the discount rate is 8.9%. The final sale price after the discount is $1,394.
When making a purchase decision, understanding the concept of marked price and discount rate is essential. The marked price indicates the initial price set by the seller, while the discount rate shows the percentage by which the price is reduced during a sale.
In this case, knowing that the marked price of the computer is $1,518 and the discount rate is 8.9% allows customers to calculate the final sale price and determine the savings they can make. By following the calculation of the discount amount and applying the discount rate formula, buyers can make informed choices and assess the value of the offer.
By rounding the discount rate to the nearest tenth of a percent, customers can have a clearer understanding of the savings they are getting on the purchase. This transparency in pricing helps build trust between buyers and sellers and encourages smart shopping decisions.
Understanding how marked price and discount rate work together in a sale situation empowers consumers to make informed choices and maximize the value they receive from their purchases. By applying these concepts, individuals can navigate the retail landscape with confidence and make decisions that align with their budget and preferences.