Discounts and net prices are common concepts in retail and finance. A discount is a reduction in the original price of a product or service, often expressed as a percentage. The net price is the final price after the discount is applied. In essence, it's the price you actually pay for the product or service....
Calculating the Discount Amount
To calculate the discount amount, we multiply the original price by the discount percentage. In this case, the original price of the tablet is $875.00, and the discount is 12%. Therefore, the discount amount is:
$875.00 * 0.12 = $105.00
Calculating the Net Price
The net price is determined by subtracting the discount amount from the original price. Using our previous calculation, the net price of the tablet is:
$875.00 - $105.00 = $770.00
Net Price Formula
You can also calculate the net price directly using the following formula:
Net Price = Original Price * (1 - Discount Percentage)
In our case, this would be:
$875.00 * (1 - 0.12) = $770.00
Example: Applying the Concept
Imagine you're buying a pair of shoes that cost $150.00. The store offers a 20% discount. Let's calculate the net price:
Discount amount: $150.00 * 0.20 = $30.00
Net price: $150.00 - $30.00 = $120.00
Therefore, you would pay $120.00 for the shoes after the discount.
Conclusion
Calculating the net price of a discounted item is a straightforward process involving simple multiplication and subtraction. By understanding the concepts of discounts and net prices, you can easily determine the final price you'll pay for any discounted item.
Additional Considerations
While the above calculation is a simple example, it's important to note that some discounts may have additional terms or conditions. For instance, some stores may offer a discount only on specific days or for specific products. Additionally, sales tax may be applied on top of the net price. Always check the specific terms and conditions of a sale to avoid any surprises at the checkout.