Electronic Graduate Management Admission Test (e-GMAT) Practice Exam

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What is the formula for calculating single discount percentage?

Total discount / Marked price * 100

The formula for calculating the single discount percentage is derived from the relationship between the total discount provided on an item and its marked price. In this context, the total discount represents the amount deducted from the marked price to arrive at the sale price.

Using the formula of total discount divided by the marked price and multiplying by 100 gives the percentage of the marked price that is discounted. This calculation effectively shows the proportion of the marked price that the consumer saves when purchasing the item at the discounted price. Therefore, this option accurately represents how to express the discount as a percentage of the original price.

The other options may involve incorrect arithmetic or fail to relate directly to how discounts are typically expressed as percentages in retail scenarios. Understanding this formula is crucial for effective calculations in pricing strategies and consumer savings assessments.

Marked price / Total sale price * 100

Marked price * Total discount

Single discount price / Total price * 100

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