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Lesson 7 ~25 min Unit 1 · Financial Maths +85 XP

Discounts and Sale Prices

Master shop sales, find sale prices, work out savings, and reverse-engineer the original from a sale tag.

Today's hook: A $\$180$ jacket is on sale for $\$126$. What percentage was taken off?
0/5QUESTS
Think First
warm-up

A $\$180$ jacket is on sale for $\$126$. What percentage was taken off? Jot down your first reaction, then we'll see who's right.

Record your answer in your workbook.
1
The Big Idea
+5 XP

Sales involve THREE quantities: marked (original) price, sale price, and discount. Knowing any two lets you find the third, both forwards and backwards.

A $\$180$ jacket is on sale for $\$126$. The discount in dollars is $180 - 126 = \$54$. The discount as a percentage is $\tfrac{54}{180} \times 100 = 30\%$. So this is "$30\%$ off". You can also reverse: knowing the sale price and the % off, find the original.

Discount $\%$ $= \dfrac{\text{Marked} - \text{Sale}}{\text{Marked}} \times 100$
Three numbers, three links
Marked, Sale, Discount, each pair finds the third.
Discount $\%$
Saving as a fraction of the ORIGINAL price.
Reverse for original
If sale = $70\%$ of marked, marked = sale $\div 0.70$.
2
What You'll Master
objectives

Know

  • Marked price = original (RRP)
  • Sale price = marked − discount
  • Discount can be % or dollars
  • Working backwards: marked = sale $\div$ (multiplier)

Understand

  • Why discount % is always on the ORIGINAL (marked) price
  • How to reverse to find the marked price from a sale price
  • The difference between sale price and discount

Can Do

  • Find sale price given % off
  • Find % off given marked and sale prices
  • Find marked price given sale price and discount %
3
Words You Need
vocabulary
Marked priceThe original price before any discount (RRP).
Sale priceThe price actually paid after a discount.
DiscountThe amount taken off the marked price.
SavingSame as discount, what you save in dollars.
Recommended Retail PriceManufacturer's suggested price, often the marked price.
Reverse percentageWorking back from sale price to find the original.
4
Spot the Trap
heads-up

Wrong: "Sale $\$126$, was $\$180$, so $\$126 \div \$180 = 70\%$ off", NO. $70\%$ is what you PAY, $30\%$ is OFF.

Right: You pay $70\%$ ($\$126$); discount is $30\%$ ($\$54$). Sum to $100\%$.

Wrong: "A jacket's sale is $\$60$ at $25\%$ off. So the marked price was $60 + 25 = \$85$.", NO; the $25\%$ is not $\$25$.

Right: Sale $= 75\%$ of marked, so marked $= 60 \div 0.75 = \$80$.

5
Sale Price When You Know % Off
+5 XP

Forward problem, most common in shops. Given marked price and discount rate, find the sale price.

A $\$220$ guitar with $35\%$ off. Multiplier method: $\times (1 - 0.35) = \times 0.65$. $220 \times 0.65 = \$143$ sale price. The discount itself: $220 \times 0.35 = \$77$ saved. Check: $\$143 + \$77 = \$220$ ✓.

Sale $= $ Marked $\times (1 - $ Discount Rate$)$
Always pay $(1 - r)$
$35\%$ off = pay $65\%$.
Single multiplier step
Faster than subtraction.
Sale + savings = marked
Useful sanity check.
6
Reverse Discount Problems
+5 XP

Given the sale price and discount rate, find the original (marked) price. Reverse the multiplier.

A jacket on sale for $\$84$, after $25\%$ off. The $\$84$ is $75\%$ of the marked price. So marked $= 84 \div 0.75 = \$112$. Saving: $\$112 - \$84 = \$28$. Always DIVIDE by the pay-fraction, never multiply.

Marked $= \dfrac{\text{Sale}}{1 - \text{Discount Rate}}$
Divide, don't multiply
Reverse problems use $\div$.
By pay-fraction
$25\%$ off $\Rightarrow$ divide by $0.75$.
Sale > marked impossible
Multiplied by $<1$, sale must be less than marked.
Watch Me Solve It · The $\$180$ jacket
+15 XP per step
Q1
PROBLEM
A $\$180$ jacket is on sale for $\$126$. What percentage was taken off?
  1. 1
    Find discount in dollars
    $180 - 126 = \$54$
    Marked minus sale.
  2. 2
    Discount as % of marked
    $\tfrac{54}{180} \times 100$
    Discount/marked × 100.
  3. 3
    Compute
    $0.30 \times 100 = 30\%$
    So $30\%$ off.
Answer$30\%$ off
Watch Me Solve It · Sale price calc
+15 XP per step
Q2
PROBLEM
A $\$320$ watch has $40\%$ off. What is the sale price?
  1. 1
    Multiplier
    $1 - 0.40 = 0.60$
    You pay $60\%$.
  2. 2
    Multiply
    $320 \times 0.60$
    Sale price.
  3. 3
    Compute
    $320 \times 0.60 = \$192$
    Or: discount $= 0.40 \times 320 = 128$; $320-128=192$.
Answer$\$192$
Watch Me Solve It · Reverse the discount
+15 XP per step
Q3
PROBLEM
A scarf is on sale for $\$42$ after a $30\%$ discount. What was the marked price?
  1. 1
    Sale = $70\%$ of marked
    $42 = 0.70 \times M$
    Pay-fraction is $1 - 0.30 = 0.70$.
  2. 2
    Divide
    $M = 42 \div 0.70$
    Reverse: divide by pay-fraction.
  3. 3
    Compute
    $M = \$60$
    Marked was $\$60$; you save $\$18$.
AnswerMarked $= \$60$
8
Common Pitfalls
heads-up
Confusing pay $\%$ with off $\%$
Saying $70\%$ off when you actually pay $70\%$.
Fix: Off $+$ Pay $= 100\%$. Always check which is which.
Forward formula in reverse
Using $\times 0.75$ when going backwards, gives wrong answer.
Fix: Going BACKWARDS means DIVIDE. Sale $\div$ pay-fraction = marked.
Adding the discount % as dollars
Treating $25\%$ off as $\$25$ instead of $25\%$ of price.
Fix: Discount is a fraction OF the marked price.
Copy Into Your Books

Forward (Sale Price)

  • Sale $= $ Marked $\times (1 - r)$
  • $\$200$ at $25\%$ off $= \$150$
  • Discount $= $ Marked $\times r$

Reverse (Marked Price)

  • Marked $= $ Sale $\div (1 - r)$
  • $\$150$ at $25\%$ off $\Rightarrow$ marked $= \$200$
  • Divide, not multiply

Find % Off

  • $\%$ off $= \tfrac{M - S}{M} \times 100$
  • $\$80 \to \$60$ is $25\%$ off
  • Always on the marked price

Quick Sanity Check

  • Sale $+$ Saving $= $ Marked
  • Pay $\%$ $+$ Off $\%$ $= 100\%$
  • Sale $<$ Marked always

How are you completing this lesson?

D
Brain Trainer · Discounts and Sale Prices
4 problems

Four drill problems to sharpen your skills. Work each, then reveal the answer.

  1. 1 A $\$150$ shirt has $20\%$ off. Sale price?

    $150 \times 0.80 = \$120$.$\$120$
  2. 2 Sale $\$36$, marked $\$60$. What % off?

    $\tfrac{24}{60} \times 100 = 40\%$.$40\%$ off
  3. 3 Sale $\$108$ after $10\%$ off. Marked?

    $108 \div 0.90 = \$120$.$\$120$
  4. 4 A $\$45$ book is on sale for $\$36$. % off?

    $\tfrac{9}{45} \times 100 = 20\%$.$20\%$ off
Complete in your workbook.
1
A $\$160$ pair of jeans has $25\%$ off. Sale price?
+10 XP
2
A $\$50$ book is now $\$40$. What % off?
+10 XP
3
A sale price of $\$144$ reflects $20\%$ off. The marked price was:
+10 XP
4
Saving $\$45$ on a $\$150$ item is what % discount?
+10 XP
5
Sale price of $\$76.50$ after $15\%$ off, what was marked?
+10 XP
Show Your Working
9 marks total
Apply Medium 3 MARKS

Q6. Calculate the sale price for: (a) $\$240$ marked, $35\%$ off; (b) $\$1450$ marked, $12\%$ off; (c) $\$76$ marked, $42\%$ off.

Answer in your workbook.
Understand Easy 2 MARKS

Q7. Tahlia paid $\$32$ for a top that was on sale for $20\%$ off. (a) What was the marked price? (b) How much did she save?

Answer in your workbook.
Reason Hard 4 MARKS

Q8. A guitar normally costs $\$480$. During a sale it is reduced by $25\%$. After the sale, the shop adds a further markup of $20\%$ on the sale price. (a) Find the post-sale price. (b) Is the new price equal to the original $\$480$? Show working. (c) Explain why a $25\%$ discount followed by a $20\%$ markup is NOT the same as ending up where you started.

Answer in your workbook.
Comprehensive Answers

Quick Check

1. B$\$120$.

2. B$20\%$.

3. C$\$180$.

4. B$30\%$.

5. C$\$90$.

Show Your Working Model Answers

Q6 (3 marks): (a) $240 \times 0.65 = \$156$ [1]. (b) $1450 \times 0.88 = \$1276$ [1]. (c) $76 \times 0.58 = \$44.08$ [1].

Q7 (2 marks): (a) Marked $= 32 \div 0.80 = \$40$ [1]. (b) Saved $= 40 - 32 = \$8$ [1].

Q8 (4 marks): (a) Sale: $480 \times 0.75 = \$360$. After markup: $360 \times 1.20 = \$432$ [2]. (b) No, $\$432 \neq \$480$ [1]. (c) The $25\%$ discount is on $\$480$ (savings $\$120$), but the $20\%$ markup is on the lower $\$360$ (only $\$72$). Different base prices mean the changes don't cancel, overall it's $\$48$ less, equivalent to a $10\%$ discount on the original [1].

Stretch Challenge · +25 XP, +10 coins

The Layered Sale

A store advertises “Up to $50\%$ off!”. The fine print: $20\%$ off, then a further $25\%$ at the till, then a final $15\%$ student discount. (a) Find the overall multiplier and the equivalent single percentage discount. (b) Is the “$50\%$ off” advertising honest?

Reveal solution

(a) Combined multiplier $= 0.80 \times 0.75 \times 0.85 = 0.510$. So the equivalent single discount is $1 - 0.510 = 49\%$. (b) Very nearly $50\%$, just under. The ad is technically “up to”, which legally usually includes anything below, so it's arguable. The real saving is $49\%$, not the full $50\%$.

R
Quick Review

Three numbers

Marked, Sale, Discount

Forward

Sale = Marked × $(1-r)$

Reverse

Marked = Sale $\div (1-r)$

Find % off

Save/marked × 100

Sale $<$ Marked

Always

Sum check

Pay% + Off% = 100%

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