Discount - Common Mistakes to Avoid
ā Discount - Common Mistakes to Avoid
šÆ Overview
Discount problems are common in exams but students often make errors in identifying marked price, selling price, and calculating percentages correctly. This guide covers common mistakes and their solutions.
š„ Critical Mistake Categories
Mistake 1: Wrong Base for Discount Percentage
Common Error:
Calculating discount on selling price instead of marked price
Example:
Question: MP = ā¹500, SP = ā¹400. Find discount %.
Wrong: Discount % = (100/400) Ć 100 = 25% ā (using SP as base)
Correct: Discount % = (100/500) Ć 100 = 20% ā
(using MP as base)
Golden Rule:
- Discount % is ALWAYS calculated on Marked Price (MP)
- Discount = MP - SP
- Discount % = (Discount/MP) Ć 100
Mistake 2: Confusing MP, CP, and SP
Common Error:
Mixing up marked price, cost price, and selling price
Example:
Question: CP = ā¹300, MP = ā¹400, Discount = 20%. Find profit %.
Wrong: SP = 400 - 20% = 320, Profit = 320 - 300 = 20, Profit% = 20/300 = 6.67% ā
Correct: SP = 400 - 20% of 400 = 400 - 80 = 320
Profit = 320 - 300 = 20
Profit% = (20/300) Ć 100 = 6.67% ā
Clear Definitions:
- CP: What shopkeeper pays
- MP: Written price tag
- SP: What customer actually pays
- Discount: Reduction from MP
Mistake 3: Successive Discount Errors
Common Error:
Adding successive discounts directly
Example:
Question: MP = ā¹1000, discounts 20% and 10%. Find SP.
Wrong: Total discount = 20% + 10% = 30%
SP = 1000 - 30% = 700 ā
Correct: After 20%: SP = 1000 - 200 = 800
After 10%: SP = 800 - 80 = 720
Equivalent discount = (1000 - 720)/1000 Ć 100 = 28% ā
Successive Discount Formula:
Final SP = MP Ć (1 - dā/100) Ć (1 - dā/100)
Equivalent discount = 1 - (1 - dā/100) Ć (1 - dā/100)
Mistake 4: Discount and Profit Confusion
Common Error:
Not understanding relationship between discount and profit
Example:
Question: CP = ā¹200, MP = ā¹300, Discount = 25%. Find profit/loss.
Wrong: Discount = 25% of 300 = 75, SP = 300 - 75 = 225
Loss = 225 - 200 = 25, Loss% = 25/225 Ć 100 = 11.11% ā
Correct: SP = 300 - 25% of 300 = 300 - 75 = 225
Profit = 225 - 200 = 25
Profit% = (25/200) Ć 100 = 12.5% ā
š Advanced Concept Mistakes
Mistake 5: Reverse Discount Problems
Common Error:
Wrong calculation when discount percentage is given after profit
Example:
Question: CP = ā¹400, Profit = 25%, then discount = 20%. Find SP.
Wrong: Discount on CP = 20% of 400 = 80 ā
Correct: MP = 400 + 25% = 400 + 100 = 500
SP = 500 - 20% of 500 = 500 - 100 = 400 ā
Reverse Process Steps:
- Find MP from CP and profit
- Apply discount to MP
- Calculate final SP
Mistake 6: Multiple Items Discount
Common Error:
Applying same discount to all items without checking conditions
Example:
Question: Buy 2 get 1 free, each item MP = ā¹100. Find effective discount.
Wrong: Discount = 1/3 = 33.33% ā
Correct: Pay for 2, get 3 items
Cost = ā¹200, Value = ā¹300
Discount = (300 - 200)/300 Ć 100 = 33.33% ā
Mistake 7: Trade Discount vs Cash Discount
Common Error:
Not distinguishing between trade discount and cash discount
Example:
Question: List price = ā¹1000, Trade discount = 20%, Cash discount = 5%. Find payment.
Wrong: Total discount = 25% ā
Correct: After trade discount: 1000 - 20% = 800
After cash discount: 800 - 5% = 760 ā
Discount Types:
- Trade Discount: Given on bulk purchases
- Cash Discount: Given for prompt payment
- Sequential: Trade first, then cash
š¢ Complex Scenario Mistakes
Mistake 8: Marked Price Calculation
Common Error:
Wrong calculation when MP needs to be found
Example:
Question: CP = ā¹320, Profit = 20%, Discount = 10%. Find MP.
Wrong: MP = 320 + 20% = 384 ā
Correct: SP = 320 + 20% = 384
Let MP = x
x - 10% of x = 384
0.9x = 384
x = 384/0.9 = 426.67 ā
Mistake 9: Bill Discount Problems
Common Error:
Wrong calculation in bill discount scenarios
Example:
Question: Bill amount = ā¹10000, due in 3 months, discount rate = 12% per annum. Find discount.
Wrong: Discount = 10000 Ć 12% = 1200 ā
Correct: Discount = 10000 Ć 12% Ć (3/12) = 10000 Ć 0.12 Ć 0.25 = 300 ā
ā” Quick Verification Methods
Method 1: Logic Check
After discount, SP < MP ā
After profit, SP > CP ā
Successive discounts < sum of discounts ā
Method 2: Range Check
Discount% usually between 5-50% ā
Profit% usually between 0-50% ā
Final SP should be reasonable ā
Method 3: Back Calculation
If MP = 500, discount = 20%, SP = 400
Check: 500 - 20% of 500 = 500 - 100 = 400 ā
š Exam Strategy Tips
Question Approach
- Identify given values: CP, MP, SP, discount, profit
- Understand the relationship: What leads to what
- Apply formulas step by step
- Calculate carefully
- Verify with logic
Common Question Patterns
- Basic discount calculation
- Successive discounts
- Discount and profit together
- Marked price finding
- Bill discount problems
- Free item offers
Time Management
- Simple problems: 30-45 seconds
- Medium problems: 60-90 seconds
- Complex problems: 2 minutes maximum
š Related Topics
š Quick Reference Sheet
Essential Formulas
1. Discount = MP - SP
2. Discount % = (Discount/MP) Ć 100
3. SP = MP Ć (1 - Discount%/100)
4. Successive discounts: SP = MP Ć (1-dā/100) Ć (1-dā/100)
5. Equivalent discount = 1 - (1-dā/100) Ć (1-dā/100)
Quick Calculations
- 10% discount = MP/10 off
- 20% discount = MP/5 off
- 25% discount = MP/4 off
- 50% discount = MP/2 off
Red Flags
- Wrong base for discount percentage
- Adding successive discounts
- Confusing MP, CP, SP
- Wrong sequence in trade/cash discounts
- Calculation errors in percentages
šÆ Next Steps
Master discount problems:
- Practice basic discount calculations
- Focus on successive discounts
- Learn discount-profit combinations
- Master marked price problems