Page 28 - LESSON 2: DISCOUNTS AND COMMISSIONS

C. FINDING THE DISCOUNT RATE
In our previous discussion, we explained how to get the discount and the net price. Some

wholesalers, however, may list only the list price and the net price. In this case, the buyer may want
to know the discount rate being offered so that it can be compared with the rate being offered by

the other suppliers.

Here are some examples to solve problems of this nature.

Example 1.
Phillip’s Sports Center ordered merchandise listed at ₱230. The invoice received showed

the net price as ₱195.50. Find the discount rate offered by Phillip’s Sports Center.

Solution:

From our discount problem, we have,
= ×

If we want to get the discount rate, we have to divide both sides of the equation by the list price,
as,
( × )
=

=

or

=

We can now get the answer to Example 1, thus,

=

Where: = −
= ₱230 − ₱196.50

= ₱34.50

= ₱230.00
= ₱34.50/₱230
= 0.15 or 15% Answer

Page | 6 BUSINESS MATHEMATICS: MODULE 2