Define simple discount and examples

Simple discount is a type of financial transaction where a certain amount is deducted from the original price of an item, known as the face value, to determine the discounted price. The formula to calculate the simple discounted price is:

D = F \times r \times t

where:
D = Discount amount
F = Face value of the item
r = Discount rate
t = Time period

Example:
A shirt is originally priced at $50 and is on sale for 20% off. If the discount period is 3 months, calculate the simple discount.

Given:
F = $50 (face value)
r = 0.20 (discount rate)
t = 3 months

Using the formula above:
D = $50 \times 0.20 \times 3 = $30

Therefore, the simple discount on the shirt is $30.

\boxed{Answer: $30}