Managing Your Personal Finances Unit 7 Computing Discounts

Managing Your Personal Finances Unit 7: Computing Discounts 1

STANDARD 8. 2 Students will be able to calculate discounts, double discounts and tips. 2

Lesson Goals I can calculate discounts. n I can calculate double discounts. n I can calculate tips. n 3

Calculating Discount… Discount Terms Original Price n The price the retailer originally thought he could sell the good or service for (retail price). Sale Price n The price at which the retailer hopes a consumer feels she “has” to buy the good or service. Discount The percentage difference between the original and the sale price. Double Discount n A discount on top of a discount. n 4

Calculating Discount… Simple Discount-Working Together #1 What is the Sale Price of a shirt originally $30. 00 with a Discount of 10% off? $ 30. 00 Original Price - Discount (Original Price * Sale Percentage) - ______ = Sale Price =$ Step 1. $30. 00 * 10% = $3. 00 Step 2. $30. 00 - $3. 00 =$27. 00 Another way to calculate: 90% of $30. 00 or $30. 00 * 90% = $27. 00 5

Calculating Discount… Simple Discount-Working Together #2 What is the Sale Price of a shirt originally $50. 00 with a Discount of 15% off? $ 50. 00 Original Price - Discount (Original Price * Sale Percentage) - ______ = Sale Price =$ Step 1. $50. 00 * 15% = $_____ Step 2. $50. 00 - $______ =$_______ Another way to calculate: 85% of $50. 00 or $50. 00 * 85% = $______ 6

Calculating Discount… Simple Discount-On Your Own #1 What is the Sale Price of a shirt originally $60. 00 with a Discount of 25% off? $ 60. 00 Original Price - Discount (Original Price * Sale Percentage) - ______ = Sale Price =$ Step 1. $60. 00 * 25% = $_____ Step 2. $60. 00 - $______ =$_______ Another way to calculate: 75% of $60. 00 or $60. 00 * 75% = $______ 7

Calculating Discount… Simple Discount-On Your Own #2 What is the Sale Price of a pair of pants originally $29. 99 with a Discount of 15% off? $ 29. 99 Original Price - Discount (Original Price * Sale Percentage) - ______ = Sale Price =$ Step 1. $29. 99 * 15% = $_____ Step 2. $29. 99 - $______ =$_______ Another way to calculate: 85% of $29. 99 or $29. 99 * 85% = $______ 8

Calculating Discount… Calculating the Percentage Discount-Working Together #1 What is the Percentage Discount of a shirt that was originally priced at $40. 00 and you paid $30. 00? % Discount = 9

Calculating Discount… Calculating the Percentage Discount-Working Together #2 What is the Percentage Discount of a shirt that was originally priced at $35. 00 and you paid $27. 00? % Discount = 10

Calculating Discount… Calculating the Percentage Discount-On Your Own #1 What is the Percentage Discount of a watch that was originally priced at $75. 00 and you paid $65. 00? % Discount = 11

Calculating Discount… Calculating the Percentage Discount-On Your Own #1 What is the Percentage Discount of a tie that was originally priced at $45. 99 and you paid $38. 99? % Discount = 12

Double Discount… Double Discounts are discounts on top of discounts. This is a technique used by retailers to convince consumers that they are getting a “really” good bargain. n You will see signs like: n n “Marked down twice” “Reduced for clearance” “Take an additional 10% off at the register” “Discontinued Item” 13

Calculating Double Discount… Double Discount-Working Together #1: What is the Sale Price for a jogging suit that originally costs $100. 00 with 50% Discount and an additional 50% Discount. $ 100. 00 Original Price - $ 50. 00 - Discount = $ 50. 00 = Sale Price - Additional Discount - $ 25. 00 = Double Discount Price = $ 25. 00 Original Price $100. 00 x Sale 50% = Discount Sale Price (Original Price –Discount) $50. 00 x Additional 50% off Of Sale Price 25. 00 = New Price (Sale Price – Additional Off) $25. 00 14

Calculating Double Discount… Double Discount-Working Together #2: What is the Sale Price for a jogging suit that originally costs $75. 00 with 25% Discount and an additional 15% Discount. $ 75. 00 Original Price - $_____ - Discount = $_____ = Sale Price - Additional Discount - $_____ = Double Discount Price = $_____ Original Price x Sale 25% = Discount Sale Price (Original Price –Discount) x Additional 15% off Of Sale Price = New Price (Sale Price – Additional Off) 15

Calculating Double Discount… Double Discount-On Your Own #1: What is the Sale Price for a watch that originally costs $69. 99 with 20% Discount and an additional 15% Discount. $ 69. 99 Original Price - $_____ - Discount = $_____ = Sale Price - Additional Discount - $_____ = Double Discount Price = $_____ Original Price x Sale 20% = Discount Sale Price (Original Price –Discount) x Additional 15% off Of Sale Price = New Price (Sale Price – Additional Off) 16

Calculating Double Discount… Double Discount-On Your Own #2: What is the Sale Price for a watch that originally costs $85. 99 with 25% Discount and an additional 20% Discount. $ 85. 99 Original Price - $_____ - Discount = $_____ = Sale Price - Additional Discount - $_____ = Double Discount Price = $_____ Original Price x Sale 20% = Discount Sale Price (Original Price –Discount) x Additional 15% off Of Sale Price = New Price (Sale Price – Additional Off) 17

How Much Should You Tip at Restaurants? There are different rules for different kinds of restaurants and different levels of service. Generally, you should tip between 15 -20% of the total bill (before taxes. ) Working Together #1 $ 100. 00 What is a reasonable tip to * 15% leave for a restaurant bill of $100 (if you had good service)? = $ 15. 00 18

How Much Should You Tip at Restaurants? On Your Own #1 What is a reasonable tip to leave for a restaurant bill of $75. 00 (if you had good service)? $ 75. 00 * 15% = $______ 19

How Much Should You Tip at Restaurants? On Your Own #2 What is a reasonable tip to leave for a restaurant bill of $50. 00 (if you had good service)? $ 50. 00 * 15% = $_____ 20