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## Video-Lesson Transcript

In this lesson, we will discuss percent discount and tax.

### Percent Discount

First, let’s discuss percent discount.

Percent discount is how much you’re going to receive off of a price.

For example, a TV had an original price of $\1,000$ which was put on sale at $20\%$.

Some are confused with $20\%$. This is not a value, it’s a ratio or a fraction.

So here we should find out what is $20\%$ of $\1,000$ then subtract that.

Let’s compute it $1,000 \times 0.20$

Just a side note: $20\% = 0.20$

So, $1,000 \times 0.20 = 200.00$ $200$ is the discount. This is what we should take off of the price.

In the example, since the TV was originally priced at $\1,000$, we should subtract the discount of $\200$. $1,000 - 200 = 800$

The discounted price of the TV is $\800$. Again, the $20\%$ is not the actual price. We should find out what is $20\%$ of $\1,000$ then subtract it from the original price of $\1,000$ to get the discounted price.

### Tax

Now, let’s move on to tax.

Tax is added to a price.

For example, a different TV is priced at $\1,000$ with a tax of $6\%$.

So we have to find out what is $6\%$ of $\1,000$. Then add it to get the final price.

Side note: $6\% = 0.06$

Let’s compute: $1,000 \times 0.06 = 60.00$

So now the final price is computed as the original price of the TV plus the tax. $1,000 + 60 = 1,060$

The total cost is $\1,060$. So for tax, find the amount then add it on the original price.

### Discount and Tax

Let’s have more complicated problems involving discount and tax.

A very important rule in discount and tax is to:
Always do discount first then do tax of the discounted price.

For example, we have a TV priced at $\1,000$, discounted for $20\%$ and should be taxed at $6\%$.

To compute, let’s get the discount first. $1,000 \times 0.20 = 200.00$

Then subtract to get the discounted price $1,000 - 200 = 800$

The $\800$ is the sale price/discounted price.

Then let’s get the tax $800 \times 0.06 = 48$

The tax is $\48$

So to get the final price we have to add the discounted price to the tax. $800 + 48 = 848$

Our total cost now is $\848$ Let’s have a quick recap.

We have a TV priced at $\1,000$, discounted for $20\%$ and should be taxed at $6\%$.

We got the discount of $\200$ which was subtracted to the original price of $\1,000$, the answer is $\800$. $\800$ is the price we’re paying for the TV. The same price we’re going to use to get the tax.

The tax was computed by $\800$ multiplied by the tax $6\%$ where we got the tax of $\48$.

So the total cost is computed by $\800$ for the TV plus the tax of $\48$.

So the total cost of the TV is $\848$.