What is a Discount (as Percentage)?

S1-SA2-0305

Grade Level:

Class 5

Maths, Finance, Economics, India (GST context)

Definition

What is it?

A discount (as a percentage) is a reduction in the original price of an item, shown as a part of 100. It tells you how much less you have to pay compared to the original price, expressed as a percentage.

Simple Example

Quick Example

Imagine your favourite cricket bat costs ₹1000. If the shop offers a '10% discount', it means you pay 10% less than ₹1000. So, you save ₹100, and the new price is ₹900.

Worked Example

Step-by-Step

Let's say a school bag has an original price of ₹800. The shop is offering a 25% discount.

Step 1: Identify the original price and the discount percentage.
Original Price = ₹800
Discount Percentage = 25%

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Step 2: Calculate the amount of discount. To do this, find 25% of ₹800.
Discount Amount = (25/100) * ₹800

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Step 3: Simplify the calculation.
Discount Amount = 0.25 * ₹800
Discount Amount = ₹200

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Step 4: Subtract the discount amount from the original price to find the final selling price.
Selling Price = Original Price - Discount Amount
Selling Price = ₹800 - ₹200

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Answer: The school bag will cost ₹600 after the 25% discount.

Why It Matters

Understanding discounts helps you save money and make smart choices when shopping, whether online or in local markets. It's useful in finance for budgeting, in economics for understanding market prices, and even for small business owners who set their own prices. Shopkeepers, sales managers, and even government officials dealing with taxes use this concept daily.

Common Mistakes

MISTAKE: Subtracting the percentage directly from the price (e.g., ₹100 - 10% = ₹90). | CORRECTION: First, calculate the *amount* of the discount (e.g., 10% of ₹100 = ₹10). Then, subtract this *amount* from the original price (₹100 - ₹10 = ₹90).

MISTAKE: Confusing discount percentage with the final percentage you pay (e.g., thinking 20% discount means you pay 20% of the price). | CORRECTION: If there's a 20% discount, it means you pay 100% - 20% = 80% of the original price.

MISTAKE: Applying discounts one after another by adding percentages (e.g., 10% + 20% discount = 30% discount). | CORRECTION: Discounts are usually applied to the *reduced* price. A 10% discount followed by a 20% discount is not the same as a 30% discount.

Practice Questions

Try It Yourself

QUESTION: A pair of jeans costs ₹1200. If there's a 15% discount, what is the discount amount? | ANSWER: ₹180

QUESTION: A smartphone is priced at ₹15,000. After a 10% discount, what is its selling price? | ANSWER: ₹13,500

QUESTION: A bookstore offers a 20% discount on all books. If a book costs ₹450, and you buy two such books, how much total money do you save? | ANSWER: ₹180

MCQ

Quick Quiz

A bicycle originally costs ₹5000. If a shop offers a 20% discount, what is the final price?

₹4980

₹4000

₹1000

₹4800

The Correct Answer Is:

A 20% discount on ₹5000 is (20/100) * ₹5000 = ₹1000. Subtracting this from the original price gives ₹5000 - ₹1000 = ₹4000.

Real World Connection

In the Real World

You see discounts everywhere in India, especially during festivals like Diwali or Republic Day sales at Big Bazaar or online on Flipkart. When you use apps like Swiggy or Zomato for food delivery, they often show you a percentage discount on your order. Even when buying vegetables from a local vendor, you might try to get a small discount!

Key Vocabulary

Key Terms

ORIGINAL PRICE: The price before any discount. | DISCOUNT AMOUNT: The actual money saved. | DISCOUNT PERCENTAGE: The discount shown as a part of 100. | SELLING PRICE: The price after the discount is applied.

What's Next

What to Learn Next

Now that you understand discounts, you can learn about 'Profit and Loss'. This will help you see how shops decide their original prices and discounts to still make money, which is a key part of business.