As you learn about using percentages in real life examples are available to show you precisely how they are used in everyday settings, from sales tax to more.

### Discounts, markdowns, and sales

Have you ever bought something on sale marked down by **twenty** **percent**? Or used a coupon to take **30% off**? If so, you've used a** discount**. A discount is usually a **percentage **of the original price. The percentage is **subtracted** from the original price to determine the sale price.

Let's say a shirt costs $8, but it's been marked down by 50%. When you check out, 50% of $8 will be subtracted from the original price. How much would the shirt cost after the discount?

Click through the slideshow to learn how to calculate discounts.

Let's say a shirt costs eight dollars, but it's on sale for 50% off.

This means it will cost **fifty percent less** than the original price, or **half** as much.

This discount is a **percentage** of the original price. Here, **50% off** means the discount is 50% of $8.

50%, or** half**, of 8 is 4. This means the shirt will cost $4 **less** than the original price.

Remember, the discount is **taken off** of the original price. So we'll **subtract** the discount from the original price.

8 minus 4 is 4.

So the shirt would cost four dollars on sale.

Let's try another example. What if the same shirt was on sale for 20% off?

This means it would cost **twenty percent less** than the original price. This time, it'll take a few more steps to find the final price.

The discount is 20% of $8.

Whenever, you see the phrase **"of something"** in a math sentence, it's usually a hint that you'll need to **multiply**.

So we'll multiply 8 by 20%.

Before we can do that, we'll need to convert 20% into a decimal.

We'll move the decimal point two places **to the left**...

We'll move the decimal point two places **to the left**...so 20% becomes 0.20.

Now we can multiply. 8 times 0.20 equals 1.60.

Another way to say this is that 20% of $8.00 is $1.60.

The shirt will cost $1.60 **less** than the original price of $8. So we'll **subtract** the discount from the original price.

8.00 minus 1.60 equals 6.40.

So the shirt would cost $6.40 on sale.

#### Try This!

Find the final cost for each item.

You find a pair of shoes on sale for 35% off. They originally cost $90.00. What will they cost on sale?

You spend $42.00 on groceries, but you have a coupon for 10% off. What is the final price of your bill?

A bookstore is going out of business, so all books are 60% off. How much would you spend on a book that originally cost $12.95?