Discount Rate = 1 –
Discount Rate = 1 – Sale Price/Original Price
800/1,000
Discount Rate = 1 – 0.8
Discount Rate = 0.2
0.2 Converted to a Percent: 0.2 = 20%
Percentage Discount given an Original Price of $1,000 and a Sale Price of $800 = 20%
Note: Reduction in Price = $1,000 – $800 = $200
