10% off means they will pay 90% of the basic cost. 90% of 420 is
$${\frac{{\mathtt{90}}}{{\mathtt{100}}}}{\mathtt{\,\times\,}}{\mathtt{420}} = {\mathtt{378}}$$ so they pay $378
Alternatively, you can take 10% of $420 (that is, one-tenth of $420), namely $42, and subtract this from $420.
$420 - $42 = £378