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Intermediate 🔢 Arithmetic & Number Sense Topic 63 of 111

Discounts and Sales Tax

Apply percent decrease or increase to price.

Key idea

Apply percent decrease or increase to price.

In depth

A discount of d% means you pay (100−d)% of the price: multiply by (1 − d/100). Sales tax of t% adds: multiply by (1 + t/100). Apply them in sequence on the changing price.

Worked example

A 30 shirt with 20% off costs 30 × 0.8 = 24. Add 10% tax: 24 × 1.1 = 26.40.

Formula

price × (1 − d)

Real-world uses

Common mistake

Treating a discount followed by tax as cancelling out. The percentages apply to different amounts.

How to learn this

  1. Read the key idea and say it in your own words.
  2. Work through the worked example, then try a similar problem.
  3. Use the interactive lesson’s visual and mini-quiz to check the pattern.

Frequently asked questions

What is Discounts and Sales Tax?

Apply percent decrease or increase to price. It is a topic at the intermediate level in Arithmetic & Number Sense.

What is the formula for Discounts and Sales Tax?

The key formula is price × (1 − d).

Where is Discounts and Sales Tax used in real life?

Real-world examples: Working out the final price after a 20% off sale and a tax; Checking receipts and budgets.

What should I learn before Discounts and Sales Tax?

Make sure you are comfortable with Percentage Change, the previous topic in Arithmetic & Number Sense.

What is a common mistake with Discounts and Sales Tax?

Treating a discount followed by tax as cancelling out. The percentages apply to different amounts.

How can I practise Discounts and Sales Tax?

Open the interactive lesson, play with the visual, then answer the three-question mini-quiz. Getting two right marks the topic complete.

What comes after Discounts and Sales Tax?

Move on to Simple Interest next.

Related intermediate topics in Arithmetic & Number Sense