Solving Applications With Discount Or Mark-up

Solving Applications With Discount Or Mark-up

Applications of discount are very common in retail settings. When you buy an item on sale, the original price has been discounted by some dollar amount. The discount rate, usually given as a percent, is used to determine the amount of the discount. To determine the amount of discount, we multiply the discount rate by the original price.

We summarize the discount model in the box below.

Discount

\(\begin{array}{c}\text{amount of discount}=\text{discount rate}\phantom{\rule{0.2em}{0ex}}×\phantom{\rule{0.2em}{0ex}}\text{original price}\hfill \\ \text{sale price}=\text{original price}-\text{amount of discount}\hfill \end{array}\)

Keep in mind that the sale price should always be less than the original price.

Example

Elise bought a dress that was discounted 35% off of the original price of $140. What was the amount of discount and the sale price of the dress?

Solution

\(\begin{array}{ccc}\hfill \text{Original price}& =\hfill & \text{\$}140\hfill \\ \hfill \text{Discount rate}& =\hfill & 35\text{%}\hfill \\ \hfill \text{Discount}& =\hfill & ?\hfill \end{array}\)

\(\begin{array}{} \mathbf{\text{Step 1. Read}}\phantom{\rule{0.2em}{0ex}}\text{the problem.}\hfill & & & \\ \mathbf{\text{Step 2. Identify}}\phantom{\rule{0.2em}{0ex}}\text{what we are looking for.}\hfill & & & \text{the amount of discount}\hfill \\ \begin{array}{c}\mathbf{\text{Step 3. Name}}\phantom{\rule{0.2em}{0ex}}\text{what we are looking for.}\hfill \\ \text{Choose a variable to represent that quantity}.\hfill \end{array}\hfill & & & \begin{array}{}\\ \text{Let}\phantom{\rule{0.2em}{0ex}}d=\text{the amount of discount.}\hfill \end{array}\hfill \\ \begin{array}{c}\mathbf{\text{Step 4. Translate}}\phantom{\rule{0.2em}{0ex}}\text{into an equation. Write a}\hfill \\ \text{sentence that gives the information to find it.}\hfill \end{array}\hfill & & & \text{The discount is 35% of \$140.}\hfill \\ \text{Translate into an equation.}\hfill & & & d=0.35\left(140\right)\hfill \\ \mathbf{\text{Step 5. Solve}}\phantom{\rule{0.2em}{0ex}}\text{the equation.}\hfill & & & d=49\hfill \\ \mathbf{\text{Step 6. Check}}\text{:}\phantom{\rule{0.2em}{0ex}}\text{Does this make sense?}\hfill & & & \\ \begin{array}{}\\ \phantom{\rule{2.5em}{0ex}}\text{Is a \$49 discount reasonable for a}\hfill \\ \phantom{\rule{2.5em}{0ex}}\text{\$140 dress? Yes.}\hfill \end{array}\hfill & & & \\ \begin{array}{c}\mathbf{\text{Step 7. Write}}\phantom{\rule{0.2em}{0ex}}\text{a complete sentence to answer}\hfill \\ \text{the question.}\hfill \end{array}\hfill & & & \text{The amount of discount was \$49.}\hfill \end{array}\)

Read the problem again.

Step 1. Identify what we are looking for. the sale price of the dress
Step 2. Name what we are looking for.
Choose a variable to represent that quantity. Let \(s=\) the sale price.
Step 3. Translate into an equation.
Write a sentence that gives the information to find it. .
Translate into an equation. .
Step 4. Solve the equation. .
Step 5. Check. Does this make sense?
Is the sale price less than the original price?
Yes, $91 is less than $140.
Step 6. Answer the question with a complete sentence. The sale price of the dress was $91.

There may be times when we know the original price and the sale price, and we want to know the discount rate. To find the discount rate, first we will find the amount of discount and then use it to compute the rate as a percent of the original price. The example below will show this case.

Example

Jeannette bought a swimsuit at a sale price of $13.95. The original price of the swimsuit was $31. Find the amount of discount and discount rate.

Solution

\(\begin{array}{ccc}\hfill \text{Original price}& =\hfill & \text{\$}31\hfill \\ \hfill \text{Discount}& =\hfill & ?\hfill \\ \hfill \text{Sale Price}& =\hfill & \text{\$}13.95\hfill \end{array}\)

\(\begin{array}{} \mathbf{\text{Step 1. Read}}\phantom{\rule{0.2em}{0ex}}\text{the problem.}\hfill & & & \\ \mathbf{\text{Step 2. Identify}}\phantom{\rule{0.2em}{0ex}}\text{what we are looking for.}\hfill & & & \text{the amount of discount}\hfill \\ \begin{array}{c}\mathbf{\text{Step 3. Name}}\phantom{\rule{0.2em}{0ex}}\text{what we are looking for.}\hfill \\ \text{Choose a variable to represent that quantity}.\hfill \end{array}\hfill & & & \begin{array}{}\\ \text{Let}\phantom{\rule{0.2em}{0ex}}d=\text{the amount of discount.}\hfill \end{array}\hfill \\ \begin{array}{c}\mathbf{\text{Step 4. Translate}}\phantom{\rule{0.2em}{0ex}}\text{into an equation.}\hfill \\ \phantom{\rule{2.5em}{0ex}}\text{Write a sentence that gives the}\hfill \\ \phantom{\rule{2.5em}{0ex}}\text{information to find it.}\hfill \end{array}\hfill & & & \begin{array}{c}\text{The discount is the difference between the original}\hfill \\ \text{price and the sale price.}\hfill \end{array}\hfill \\ \phantom{\rule{2.5em}{0ex}}\text{Translate into an equation.}\hfill & & & d=31-13.95\hfill \\ \mathbf{\text{Step 5. Solve}}\phantom{\rule{0.2em}{0ex}}\text{the equation.}\hfill & & & d=17.05\hfill \\ \mathbf{\text{Step 6. Check}}\text{:}\phantom{\rule{0.2em}{0ex}}\text{Does this make sense?}\hfill & & & \\ \phantom{\rule{2.5em}{0ex}}\text{Is 17.05 less than 31? Yes.}\hfill & & & \\ \mathbf{\text{Step 7. Answer}}\phantom{\rule{0.2em}{0ex}}\text{the question with a complete sentence.}\hfill & & & \text{The amount of discount was \$17.05.}\hfill \end{array}\)

Read the problem again.

Step 1. Identify what we are looking for. the discount rate
Step 2. Name what we are looking for.
Choose a variable to represent it. Let \(r=\) the discount rate.
Step 3. Translate into an equation.
Write a sentence that gives the information to find it. .
Translate into an equation. .
Step 4. Solve the equation. .
Divide both sides by 31. .
Change to percent form. .
Step 5. Check. Does this make sense?
Is $17.05 equal to 55% of $31?
\(17.05\stackrel{?}{=}0.55\left(31\right)\)
\(17.05=17.05✓\)
Step 6. Answer the question with a complete sentence. The rate of discount was 55%.

Applications of mark-up are very common in retail settings. The price a retailer pays for an item is called the original cost. The retailer then adds a mark-up to the original cost to get the list price, the price he sells the item for. The mark-up is usually calculated as a percent of the original cost. To determine the amount of mark-up, multiply the mark-up rate by the original cost.

We summarize the mark-up model in the box below.

Mark-Up

\(\begin{array}{c}\text{amount of mark-up}=\text{mark-up rate}\phantom{\rule{0.2em}{0ex}}×\phantom{\rule{0.2em}{0ex}}\text{original cost}\hfill \\ \text{list price}=\text{original cost}+\text{amount of mark up}\hfill \end{array}\)

Keep in mind that the list price should always be more than the original cost.

Example

Adam’s art gallery bought a photograph at original cost $250. Adam marked the price up 40%. Find the amount of mark-up and the list price of the photograph.

Solution

Step 1. Read the problem.
Step 2. Identify what we are looking for. the amount of mark-up
Step 3. Name what we are looking for.
Choose a variable to represent it. Let \(m=\) the amount of markup.
Step 4. Translate into an equation.
Write a sentence that gives the information to find it. .
Translate into an equation. .
Step 5. Solve the equation. .
Step 6. Check. Does this make sense?
Yes, 40% is less than one-half and 100 is less than half of 250.
Step 7. Answer the question with a complete sentence. The mark-up on the phtograph was $100.
Step 1. Read the problem again.
Step 2. Identify what we are looking for. the list price
Step 3. Name what we are looking for.
Choose a variable to represent it. Let \(p=\) the list price.
Step 4. Translate into an equation.
Write a sentence that gives the information to find it. .
Translate into an equation. .
Step 5. Solve the equation. .
Step 6. Check. Does this make sense?
Is the list price more than the net price? Is $350 more than $250? Yes.
Step 7. Answer the question with a complete sentence. The list price of the photograph was $350.

This lesson is part of:

Math Models and Geometry II

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