Key Terms
- amount of discount
- The amount of discount is the amount resulting when a discount rate is multiplied by the original price of an item.
- discount rate
- The discount rate is the percent used to determine the amount of a discount, common in retail settings.
- interest
- Interest is the money that a bank pays its customers for keeping their money in the bank.
- list price
- The list price is the price a retailer sells an item for.
- mark-up
- A mark-up is a percentage of the original cost used to increase the price of an item.
- mixture problems
- Mixture problems combine two or more items with different values together.
- original cost
- The original cost in a retail setting, is the price that a retailer pays for an item.
- principal
- The principal is the original amount of money invested or borrowed for a period of time at a specific interest rate.
- rate of interest
- The rate of interest is a percent of the principal, usually expressed as a percent per year.
- simple interest
- Simple interest is the interest earned according to the formula