Basic Finance (Discount, Selling Price, Listed Price and Simple Interest)

Basic Finance (Discount, Selling Price, Listed Price and Simple Interest)

Discount, Selling Price and Listed Price (Level 1)

1Discount    a deduction from the usual cost of something
2Listed Price    or MRP (maximum retail price) of the product is the actual price of an article as declared by the manufacturer. Listed Price is the price before the discount is applied.
3Selling Price     is the price after the discount is applied

Discount = Listed Price - Selling Price
Selling Price = Listed Price − Discount
Listed Price = Selling Price + Discount

If a discount is expressed as a percentage (rate) then the discount formula is:
Discount = Listed Price × Discount Rate
Rate of Discount = Discount% = (Discount/Listed Price) ×100
Selling Price = Listed Price [(100−discount%)/100]
Listed Price = (Selling Price × 100)/(100−discount%)

                                                                                                                                                                                                                                         

Simple Interest

4Simple Interest     = P × R × T
5Principal (P)     is the amount that initially borrowed from the bank or invested.
6Rate (R)     is the rate of interest at which the principal amount is given to someone for a certain time, the rate of interest can be 5%, 10%, or 15%, etc.
7Time (T)     is the duration for which the principal amount is given to someone.
8Amount (A)     When a person takes a loan from a bank, he/she has to return the principal borrowed plus the interest amount, and this total returned is called Amount.

                                                                                                                                                                                                                                         

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