1. Identify retail price and discount:
- Retail price = $7.50
- Discount = $2.50
2. Insert these values into the discount rate formula:
\text{Discount Rate} = \left(\frac{\text{Discount}}{\text{Retail Price}}\right) \times 100
\text{Discount Rate} = \left(\frac{2.50}{7.50}\right) \times 100
3. Simplify the division part:
\frac{2.50}{7.50} = 0.3333
4. Multiply by 100 to make it a percentage:
0.3333 \times 100 = 33.33\%
Thus, the discount rate is 33.33\% .