Finding discounts when you go shopping can make purchases much more tempting because of the additional savings you get by buying the product at that time. However, a discount may not make the item affordable for your budget. In order to figure out if a discount makes an item affordable, you need to figure out how much the item will cost after the discount. For discounts measured as a percentage, the size of the discount depends on the original price of the item.
First, convert the percentage discount to a decimal. A 20 percent discount is 0.20 in decimal format.
Secondly, multiply the decimal discount by the price of the item to determine the savings in dollars. For example, if the original price of the item equals $24, you would multiply 0.2 by $24 to get $4.80.
Finally, subtract the value of the dollar discount from the original price to find the price of the item after the discount. In this example, you would subtract $4.80 from $24 to find the price after the discount to be $19.20.
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Now, let's delve into the concepts presented in the article regarding finding discounts and determining affordability after a discount.
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Discount Calculation: The article rightly emphasizes the importance of understanding how discounts are calculated, especially when expressed as a percentage. To illustrate, consider a 20 percent discount. To convert this percentage into a decimal, you divide it by 100. Therefore, 20 percent becomes 0.20 in decimal format.
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Determining Dollar Savings: Once the percentage discount is in decimal form, the article suggests multiplying it by the original price of the item. Using the example of a $24 item with a 20 percent discount, you would multiply 0.20 by $24 to calculate the dollar savings. In this case, the result is $4.80.
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Final Price Calculation: To find the price of the item after the discount, subtract the dollar savings from the original price. Continuing with the example, subtracting $4.80 from $24 yields a final price of $19.20.
These steps provide a clear methodology for consumers to evaluate the impact of discounts on their purchases. It's crucial to note that while discounts can enhance the attractiveness of a product, the ultimate affordability depends on one's budget constraints. This analytical approach empowers consumers to make informed choices, ensuring that the allure of discounts aligns with their financial goals.
