Solving discount problems is all about both multiplication and subtraction. Solve discount problems with help from an experienced mathematics educator in this free video clip.

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Solving discount problems is all about both multiplication and subtraction. Solve discount problems with help from an experienced mathematics educator in this free video clip.

Part of the Video Series: Math Solutions

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Hi, my name is Marija, and today I'm going to show you how to solve discount problems. If you're given an item that cost $40 and you are told that it is 20 percent off. And you want to find out what is the new price? What is the discounted price? There's two ways that you can do this problem. First we can find out what is 20 percent of 40? And you do that by multiplying 40 times point 20 because 20 percent written as a decimal is point 20. So we multiply, we bring the zero down. We get two times zero is zero. Four times two is eight. And now we have to account for these two decimal spaces that are up here. So we move our answer back two spaces. And we get eight dollars. But the eight dollars is just how much money off. So now we still have to do 40 minus eight. And we find out that our new price, our sale price is $32. The other way that you can do this problem is to realize that if you are getting 20 percent off of an item, that means that you are actually paying 80 percent of the price. So what we can do is 40 times 80 percent written as point 80 as a decimal. And we multiply these. The zero comes down. Eight times zero is zero. Eight times four is 32. And again we account for these two decimal spaces so we go back two. And we get $32 which is the same thing that we got after we subtracted the eight. So one of two ways that you can do a discount problem. You can find out the 20 percent off or however much percent off. And then subtract that number from the original price and get your discounted price. Or you can subtract this percentage from a 100 to find out what percent you are paying, in our case 80 percent. And when we do 80 percent of 40 I get $32 as my sale price.