A stereo set with a regular price of $495 is on sale for $395. What is the discount rate?
2007-12-30 14:32:58 · 4 answers · asked by Anonymous in Education & Reference ➔ Homework Help
Discount Rate has to do with interest on loans and investments, not purchases.
If you want to find out the percentage you're saving over the regular price, use this formula:
(regular price-sale price)/regular price=% savings
In this case, it would be just over 20%.
If you want to find out the percentage of the regular price you're paying, use this formula:
sale price/regular price=% paid
The discount rate on a bond is determined by dividing the amount of interest you will receive at maturity over the amount you paid for it. If you paid $25 for a bond, and received $50 when it matured, your discount rate would be 50% and your interest rate would be 100%.
The term "discount rate" is also used to describe how much interest a bank pays to the Fed when it borrows money. This is also called the "discount window."
2007-12-30 15:11:54 · answer #1 · answered by ? 3 · 0⤊ 1⤋
Your discount is $100 in cash. To find the rate of discount, put the savings(discount) over the original price$495 and then divide it out.
100/495 I don't have a calculator, but it is less than 20 %.
2007-12-30 14:38:25 · answer #2 · answered by oldteacher 5 · 0⤊ 1⤋
495-395=100
rate is 100/495=20.20%
2007-12-30 14:56:47 · answer #3 · answered by Dave aka Spider Monkey 7 · 0⤊ 0⤋
495-395=100
100/495=n/100
495n=100 times 100
495= 10,000
n= 10,000/495
n= 20.202020...
20.2% discount
2007-12-30 14:43:15 · answer #4 · answered by Lady Lefty 3 · 0⤊ 0⤋