## Discount Calculator Explanation:

A discount calculator is a tool used to determine the reduced price of a product or service after applying a discount percentage to its original price. This is commonly used in retail, online shopping, and various industries to help consumers and businesses understand the final cost of an item after a discount has been applied.

## Formula:

The basic formula for calculating the discounted price is:

\[ \text{Discounted Price} = \text{Original Price} - (\text{Original Price}

\times \text{Discount Percentage}) \]

## Components of the Formula:

**Original Price:** This is the initial cost of the product or service before any discounts are applied.

**Discount Percentage: **This is the percentage by which the original price is reduced. For example, if the discount is 10%, the discount percentage would be 0.10 in decimal form.

**Discounted Price: **This is the final cost of the item after the discount has been subtracted from the original price.

## Example:

Let's say you want to buy a shirt that costs $50, and there's a 20% discount.

\[ \text{Original Price} = $50 \]

\[ \text{Discount Percentage} = 0.20 \]

## Using the formula:

\[ \text{Discounted Price} = $50 - ($50 \times 0.20) \]

\[ \text{Discounted Price} = $50 - $10 \]

\[ \text{Discounted Price} = $40 \]

So, the discounted price of the shirt, after a 20% discount, would be $40.

## Practical Use:

**1. Online Shopping:** Customers use discount calculators to understand the final price of products after applying discounts during online shopping.

**2. Retail Stores:** Retailers use discount calculators to tag discounted prices on products or calculate final bills during sales.

**3. Business Transactions:** Businesses use discount calculations in B2B transactions, bulk purchases, and negotiations.

## Conclusion:

A discount calculator simplifies the process of determining the final cost of an item after a discount, making it easier for both consumers and businesses to make informed purchasing decisions. It's a practical tool in various financial and commercial contexts.