I've been looking at some discounted prices of goods.
They are listed with a $20\%$ discount, so to work this out I did:
$$ \$25.45 \cdot 0.8333 = \$21.21. $$
But their total was $20.34$, which I presume they got by doing $25.42 \cdot 0.8$.
To apply a $20\%$ discount or to subtract $20\%$, which of the above is correct?
Best Answer
A $20\%$ discount means that the price is $80\%$ of what it was originally, so you multiply by $1-0.2=0.8$.
$0.8\dot{3}$ is $1/1.2$, which is used to find out the original price when you have been given $120\%$ of it (if there's $20\%$ tax included in it, for example)