A discount of 10% is given on a product that costs $500. If the product is then

A discount of 10% is given on a product that costs $500. If the product is then sold for $450, what is the profit or loss percentage?

A discount of 10% is given on a product that costs $500. If the product is then sold for $450, what is the profit or loss percentage?

Step 1: Identify the original cost of the product, which is $500.
Step 2: Calculate the discount amount by multiplying the cost by the discount percentage: $500 * 0.10 = $50.
Step 3: Subtract the discount amount from the original cost to find the discounted price: $500 - $50 = $450.
Step 4: Identify the selling price of the product, which is $450.
Step 5: Compare the selling price to the cost price to determine if there is a profit or loss: Selling Price ($450) is less than Cost Price ($500).
Step 6: Calculate the loss by subtracting the selling price from the cost price: $500 - $450 = $50.
Step 7: Calculate the percentage loss by dividing the loss by the cost price and multiplying by 100: ($50 / $500) * 100 = 10%.

Discount Calculation – Understanding how to calculate the discounted price from the original price.
Cost Price vs Selling Price – Differentiating between cost price and selling price to determine profit or loss.
Profit and Loss Percentage – Calculating the percentage of profit or loss based on cost price.