COMMERCIAL

ARITHMETIC 2
Discount and Percentage Discount.
Bythe end of the lesson the you should be
able to:
Explain the term discount.

Write the formulae of calculating discount and percentage

discount.

Profit and Loss.

Is
Discount
a reduction made from;
Marked Price:
List price offering to customers

Can also done through bargaining.

Discount is worked out through subtracting selling price from marked price.

Discount = Marked Price – Selling

Price

Discount = M.P. – S.P.

 Example
The marked price of a radio was sh. 2400. Atoto bought it for sh. 2100. What discount was she allowed for the
radio?
Solution

Marked price = sh. 2400

Selling price = sh. 2100
Discount = Marked price – Selling Price
= sh. (2400 – 2100)
= shs. 300
 Percentage discount

 Percentage Discount is worked out through taking the discount acquired deciding it by the marked price and
then it is multiplied by 100%.

% Discount = Discount
/Marked Price × 100%

Example questions and solutions

 The marked price of a Television set was shs. 12000. John bought it for 10000 after being allowed a discount.
What was the percentage discount?
Solution
Marked price = shs. 12000
Selling price = shs. 10000
Discount = marked price – selling price
12000 – 10000 = 2000
Percentage discount = /Marked Price × 100%
Discount

= 2000 /12000 × 100%

= 162/3%
 Cyrus bought a plastic chair for sh. 900. If the marked price was sh. 1000,
what was the discount?

 What is the percentage discount?

 Discount = Mp – sp

 Sh. 1000 – sh. 900 = sh. 100

 %age discount
= 100
/1000 x 100% = 10%
 Profit and Loss

Example 1
If I buy a Play station for Ksh.1000 and sell it for Ksh1200.
1. A farmer made a loss of 28% by selling a goat for Sh.1440. What percentage profit
would he have made if he had sold the goat for Sh.2100?
2. Mr. Sitienei sold a house to Mr. Lagat at a profit of 10%. Mr. Lagat then sold it
to Mr. Rotich at a profit of 5%. Mr. Rotich paid Ksh 110,000 more than Mr. Lagat
for the house. Find how much Mr. Rotich paid for the house.
3. A man imported a vehicle at Shs. 600,000 and sold it at Sh. 1,080,0000. Find his
percentage profit if he spent sh. 60,000 for clearing the vehicle from the port and a further
sh. 40,000 for shipping.