Understanding Discounts and Markups: Two Methods Compared

Hi everybody, I’m Mr. Lennon, and in today’s video we are going to talk about discounts and markups. With this topic once again, there are going to be two possible methods to use. So we are going to do one problem and to show you both of the methods side by side. We always want to be careful and precise. However, when talking about percents, we need to. Need to. Need to proceed with caution. It’s very easy to say 4% is point four when that’s actually 40%. Our first method is if we take our original value and we are going to subtract that same original value times the percent they give us as a discount, as a decimal. So if we go through 60 *, point two five is 15 and 60 – 15 is 45. So the new price of the dress would be $45. Our second method is going to be taking the original value 60, and we are going to multiply that by one, which represents 100% of our original value minus the percent discount that they gave us. 1 – point two five is point seven five, and point seven five * 60 is 45. Once again, the price of the dress was $45. Which method do you prefer and why?