Calculating a 20% Discount on a $100 Purchase

Calculating a 20% Discount on a $100 Purchase

When looking to calculate a 20% discount on a $100 purchase, it's important to understand the simple math behind it. To find the discount amount, you would multiply $100 by 20% (which is 0.20). This gives you a discount of $20. Subtracting this amount from the original price leaves you with $80 as the final price after the discount.

Calculating 20% Discount on $100

Calculating a 20% discount on a $100 purchase is a common scenario in retail and business transactions. Understanding how to calculate discounts is important for both consumers and businesses to ensure accurate pricing and savings. In this article, we will walk you through the steps to determine the discounted price after applying a 20% discount on a $100 purchase.

Step 1: Understand the Discount Percentage

Before calculating the discounted price, it's crucial to understand that a 20% discount means that you will pay only 80% of the original price. This is because the discounted price is calculated by subtracting the discount percentage from 100%.

Step 2: Calculate the Discount Amount

To find out how much discount you are getting on a $100 purchase with a 20% discount, you need to multiply the original price by the discount percentage. In this case, the calculation would be:

Discount Amount = Original Price x Discount Percentage

Discount Amount = $100 x 20%

Discount Amount = $100 x 0.20

Discount Amount = $20

Therefore, the discount amount on a $100 purchase with a 20% discount is $20.

Step 3: Calculate the Discounted Price

After determining the discount amount, you can calculate the discounted price by subtracting the discount amount from the original price. The formula to calculate the discounted price is:

Discounted Price = Original Price - Discount Amount

Discounted Price = $100 - $20

Discounted Price = $80

Therefore, the discounted price after applying a 20% discount on a $100 purchase is $80.

Step 4: Verify the Discount Calculation

It's always a good practice to verify the discount calculation to ensure accuracy. You can do this by calculating what 80% of the original price is and confirming that it matches the discounted price. The calculation would be:

80% of $100 = 0.80 x $100

80% of $100 = $80

As we calculated earlier, the discounted price is indeed $80, confirming that the discount calculation is correct.

Understanding how to calculate discounts is essential for making informed purchasing decisions and for businesses to effectively manage pricing strategies. By following the simple steps outlined in this article, you can easily calculate a 20% discount on a $100 purchase and determine the discounted price accurately.

Thank you for reading our article on Calculating a 20% Discount on a $100 Purchase! We hope the information provided has been helpful in understanding how to calculate discounts and savings efficiently. Remember, knowing how to apply discounts can help you make better purchasing decisions and save money in the long run. Stay tuned for more insightful articles on financial tips and tricks. If you have any questions or feedback, feel free to reach out to us. Happy shopping!