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

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simple interest
Simple interest is the interest earned according to the formula I=Prt.