How do you calculate discount amount from the percentage rate?
Discount is the amount of cost reduced from the original cost. It is an allowance or concession in price on a purchase.
Discount Amount = (Original Cost x Discount Percentage Rate) / 100
Step 1: Assuming Values
Let us assume, for a purchase of 1 Kg of Orange, the discount percentage is 8% on the original cost of Rs. 100, then the values could be assigned as below:
Original Cost = 100
Discount Percentage = 8
Step 2: Substituting the values in the formula,
Amount = (100 x 8) / 100 = 8
Therefore the discount amount is Rs.8