SOLUTION: Example : The supplier gives me 20% discount on R200.00 which means I will have a nett amount of R160.00 that I will be paying the supplier, after discount is given , why does it h

Question 553451: Example : The supplier gives me 20% discount on R200.00 which means I will have a nett amount of R160.00 that I will be paying the supplier, after discount is given , why does it happen when I put 25% markup on that amount (R160.00) after the discount , it stays the same as the amount before discount(R200.00) ? is this correct ? what will be the correct formula ?
Answer by Theo(13342) (Show Source): You can put this solution on YOUR website!
you start at 200 and apply a 20% discount which gets you from 200 to 160.
now you charge 25% markup which gets you from 160 to get 200.
20% of 200 is equal to .2 * 200 is equal to 40.
25% of 160 is equal to .25 * 160 is equal to 40.
the percents are different but the base that the percent is being applied to is also different.
it just so happens that the discount and the markup in this case are the same.
any other markup percent would have resulted in a different number.
suppose you have 100 and discount it by 50%.
you will be left with 50.
now you mark that 50 up by 50%.
you will be left with 75.
the same 50% results in a different number because it is being applied to a different base.
50% of 100 = 50
50% of 50 = 25

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