Calculating the percentage of discount is a fundamental skill in finance and commerce that involves determining the reduction in price of an item as a proportion of its original price. For instance, if a product is discounted by 20%, the customer pays 20% less than the original price.
Understanding how to calculate percentage discounts is crucial for consumers to make informed purchasing decisions and for businesses to set competitive prices. The concept has been used throughout history, with historical records indicating its application in ancient civilizations for determining fair trade practices.