Discount Rate = 1 –
Discount Rate = 1 – Sale Price/Original Price
4/5
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 $5 and a Sale Price of $4 = 20%
Note: Reduction in Price = $5 – $4 = $1
