Understanding Discount Basics and Discount Rates
A discount is a reduction from the original price by a certain amount or percentage. The discount rate represents how much is reduced as a percentage of the original price, and the discounted price is the final price after applying the discount. The basic formula is Discounted Price = Original Price Γ (1 - Discount Rate/100). For example, a $1,000 item with a 30% discount has a discount amount of $300 and a final price of $700. The savings equal the original price minus the discounted price.