Calculate 20% Discount: Finding New Price of $40 Item

Percentage Discounts with Price Calculations

A toy costing $40 is reduced by 20%

What is the new price following the discount?

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Step-by-step video solution

Watch the teacher solve the problem with clear explanations
00:00 Determine the final price
00:06 Convert percentages to fractions
00:20 Break down 100 into factors of 20 and 5
00:26 Reduce wherever possible
00:29 20 percent is equivalent to one-fifth
00:33 Multiply one-fifth by the original price to determine the discount
00:40 Break down 40 into factors of 8 and 5
00:47 Reduce wherever possible
00:57 This is the discount, now subtract it from the original price
01:03 This is the solution

Step-by-step written solution

Follow each step carefully to understand the complete solution
1

Understand the problem

A toy costing $40 is reduced by 20%

What is the new price following the discount?

2

Step-by-step solution

408=32 40-8=32

In order to determine percentages, we must make use of the two pieces of information in our possession: the total amount (40)andthediscount(2040) and the discount (20%).</p><p>This information can be inserted into the following formula:</p><p><span class="katex">\( \frac{Price\times\text{Percentage}}{100}

Which allows us to find the percentage of something.

We insert the given information:

40×20100= 40\times\frac{20}{100}=

800100= \frac{800}{100}=

8 8

We then discover that the value of the discount is 8.

But we are not finished yet!

We need to subtract the discount from the original amount in order to determine the sale price:
\( 40-8=32

3

Final Answer

32

Key Points to Remember

Essential concepts to master this topic
  • Formula: Calculate discount amount using price × percentage ÷ 100
  • Technique: Find discount first: 40×20100=8 40 \times \frac{20}{100} = 8
  • Check: New price plus discount equals original: 32 + 8 = 40 ✓

Common Mistakes

Avoid these frequent errors
  • Confusing discount amount with final price
    Don't think 8isthefinalpricewhenfinding208 is the final price when finding 20% of 40 = 8isonlythediscountamount!Studentsoftenstophereandgive8 is only the discount amount! Students often stop here and give 8 as the answer. Always subtract the discount from the original price to find the new price.

Practice Quiz

Test your knowledge with interactive questions

Calculate 30 over 100 as a percentage:

FAQ

Everything you need to know about this question

Why can't I just calculate 80% of $40 directly?

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You absolutely can! Since a 20% discount means you pay 80% of the original price, 40×80100=32 40 \times \frac{80}{100} = 32 . This is actually a shortcut method that gives the same answer!

What's the difference between discount amount and sale price?

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The discount amount is how much money you save (8),whilethe<strong>saleprice</strong>iswhatyouactuallypay(8), while the <strong>sale price</strong> is what you actually pay (32). Don't mix these up!

How do I know if I should add or subtract the percentage?

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For discounts, you always subtract because you're paying less. For tax or tips, you add because you're paying more than the original price.

Can I use decimals instead of fractions for percentages?

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Yes! 20% = 0.20, so you can calculate 40×0.20=8 40 \times 0.20 = 8 . Both methods work perfectly!

What if the discount percentage is larger than 50%?

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The same process works! A 70% discount means you calculate 70100 \frac{70}{100} of the original price, then subtract that amount. The sale price will be quite low!

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