Percent
The word, percenf comes from the Lattn per centum, meaning _{"}_{p}_{e}_{r} hundred." A percent
i5 simlrly a ratio _{o}_{f} some number to _{1}_{0}_{0}_{.} _{S}_{o}_{,}
_{=}_{i}_{.}_{5}_{N}_{,} on6 l _{} x%o.
100
Procedure to Change a Fraction to a Percent
l. DMde the numerator by the denominator. 2. Multiply the quotient by 100 (which has the effect of moving the decimal point two
places to the dght).
_{3}_{.} _{A}_{d}_{d} _{a} percent _{s}_{i}_{g}_{n}_{.}
Note that steps 2 and 3 together are the equivalent _{o}_{f} _{m}_{u}_{l}_{t}_{i}_{p}_{l}_{y}_{i}_{n}_{g} _{b}_{y} 100%. Since 100% _{=} 100/100: 1, we are not changing _{t}_{h}_{e} valrie _{o}_{f} _{t}_{h}_{e} _{n}_{u}_{m}_{b}_{e}_{r}_{,} _{w}_{e} _{a}_{r}_{e} _{s}_{i}_{m}_{p}_{l}_{y} changhg _{t}_{h}_{e} number _{t}_{o} _{a} percent.
Example I
Converting a Fruction to _{a} _{P}_{e}_{r}_{c}_{e}_{n}_{t}
Ch"r'gg ^{1}^{Z}^{1}^{s} s ta.cet1.
Follow the steps in the procedure _{a}_{b}_{o}_{v}_{e}_{.}
2. 0.85 x 100:85
3.85o/o
Thus.
Procedure to Change a Decimal Number _{t}_{o} _{a} _{P}_{e}_{r}_{c}_{e}_{n}_{t}
I . Multiply the decimal number by 100.
_{2}_{.} _{A}_{d}_{d} _{a} percent _{s}_{i}_{g}_{n}_{.}
This procedure is equivalent to moving the decimal point two places to tlre right and _{a}_{d}_{d}_{i}_{n}_{g} _{a} percent _{s}_{i}_{g}_{n}_{.}
Example 2
Converting a Decimtl Nuntber to a Percent
Change _{0}_{.}_{2}_{3}_{5} _{t}_{o} perc€nt.
Solution: 0.235 = (0.235 x 100)Yo=23.5% Procedure to Change a Percent to a Decimal _{N}_{u}_{n}_{b}_{e}_{r}
1. Divide the number by 100.
2. Remove the percent sign.
Mathematics _{o}_{f} Finarce
Page _{I}
This procedure is equivalent to moving the decimal point _{t}_{w}_{o} places _{t}_{o} _{t}_{h}_{e} _{l}_{e}_{f}_{t} _{a}_{n}_{d} removing the percent sign. Another way _{t}_{o} _{r}_{e}_{m}_{e}_{m}_{b}_{e}_{r} _{t}_{h}_{i}_{s} _{i}_{s}_{:} _{p}_{e}_{r}_{c}_{e}_{n}_{t} _{m}_{e}_{a}_{n}_{s} _{p}_{e}_{r} _{h}_{u}_{n}_{d}_{r}_{e}_{d}
(or to divide by _{1}_{0}_{0}_{)}_{.}
Example 3
Converting a Percent _{l}_{o} _{a} _{D}_{e}_{c}_{i}_{m}_{a}_{l} _{N}_{u}_{m}_{b}_{e}_{r}
a) Change 35% to a decimal number.
b) Change YzVo to a decimal number.
Solution
35o/o=:L=0.35. _{n} _{T}_{h}_{u}_{s}_{.} _{3}_{5}_{%}_{:}_{0}_{.}_{3}_{5}_{.}
100
b)
Thus,
I
;%=0.005.
2
Example 4 How Old is _{O}_{L}_{d}_{?}
A Yahoo! _{Q}_{u}_{e}_{s}_{t}_{i}_{o}_{n} of the Week asked, "At what age do you consider someone _{o}_{l}_{d}_{?}_{'}_{l} Out ofthe 3496 people that responded 1017 said age 80 is _{o}_{l}_{d}_{.} What percent _{o}_{f} respondents feel that age 80 is old?
Solution To find the percent that feel age 80 is old, divide the number ofthose _{w}_{h}_{o} responded that age 80 is old by the total number of respondents. Then move the decimal
poinl two places to the right and add a percent _{s}_{i}_{g}_{n}_{:}
Percent
who feit _{a}_{g}_{e} _{8}_{0} _{i}_{,} _{o}_{l}_{d} _{=}
1017
_{} 0.2909 _{=} 29.09%
3496
Thus about 29.1% (to tle nearest tenth _{o}_{f}_{a} percent) _{f}_{e}_{l}_{t} _{t}_{h}_{a}_{t} _{a}_{g}_{e} _{8}_{0} _{i}_{s} _{o}_{l}_{d}_{.}
Percent _{C}_{h}_{a}_{n}_{g}_{e}
The percent increase or decrease, or percent change, over a period of time is found _{b}_{y} _{t}_{h}_{e}
foilowing _{f}_{o}_{r}_{m}_{u}_{l}_{a}_{:}
If tle latest _{a}_{m}_{o}_{u}_{n}_{t} _{i}_{s} greater _{t}_{h}_{a}_{n} _{t}_{h}_{e} _{p}_{r}_{e}_{v}_{i}_{o}_{u}_{s} em6u14 _{f}_{l}_{s} qnswer _{w}_{i}_{l}_{l} _{b}_{e} _{p}_{o}_{s}_{i}_{t}_{i}_{v}_{e} _{a}_{n}_{d} will indicate a percent increase. Ifthe latest _{a}_{m}_{o}_{u}_{n}_{t} _{i}_{s} _{s}_{m}_{a}_{l}_{l}_{e}_{r} _{t}_{h}_{a}_{n} _{t}_{h}_{e} _{p}_{r}_{e}_{v}_{i}_{o}_{u}_{s} amount, the answer will be negative and will indicate _{a} percent _{d}_{e}_{c}_{r}_{e}_{a}_{s}_{e}_{.}
Example 5 
Most Improved Baseball Record 
In 1999, the Major League baseball team with the most improved record was the Oakland 

Athletics. In 1998, the Athletics won _{7}_{4} games. _{I}_{n} _{1}_{9}_{9}_{9}_{,} _{t}_{h}_{e} _{A}_{t}_{h}_{t}_{e}_{t}_{i}_{c}_{s} _{w}_{o}_{n} _{8}_{2} _{g}_{a}_{m}_{e}_{s}_{.} 

Find the percent increase _{i}_{n} _{n}_{u}_{m}_{b}_{e}_{r} _{o}_{f} games _{w}_{o}_{n} _{f}_{r}_{o}_{m} _{1}_{9}_{9}_{8} _{t}_{o} _{1}_{9}_{9}_{9}_{.} (Source: _{I}_{J}_{S}_{A} 

Today.) 
The previous period is 1998, and the _{l}_{a}_{t}_{e}_{s}_{t} period _{i}_{s} _{1}_{9}_{9}_{9}_{.}
Mathemlrtics _{o}_{l}_{'} _{I} _{i}_{n}_{a}_{l}_{c}_{e}
_{P}_{a}_{g}_{e} _{2}
*7
l3
74
74
Percent change: r: 0.1756x100
'c77.56%
Therefore, there was about a 17.60/o increase.
Example 6
Labor Union Membership
In 1990 thee were _{a}_{p}_{p}_{r}_{o}_{x}_{i}_{m}_{a}_{t}_{e}_{l}_{y} 10,247,000labor union membem in the United States.
By 1998 this number had dropped to 9,306,000. Find the percent change in labor union membership from1990 to 1998.
_{T}_{h}_{e} previous period is 1990, and the latest period is 1998.
Percent _{c}_{h}_{a}_{n}_{g}_{e}
_{_} 9,3060mr0,242000 _{x}_{t}_{0}_{0}
10,247,m
:vO.0918x100
Thus, union membership decreased by about 9.2Vo over this period.
A formula similar to the above is used to calculate percent markup or markdown on cost.
A positive _{a}_{n}_{s}_{w}_{e}_{r} _{i}_{n}_{d}_{i}_{c}_{a}_{t}_{e}_{s} a markup and a negative answer indicates a markdown.
Example _{7}
^{p}^{e}^{r}^{c}^{e}^{n}^{t} ^{m}^{a}^{r}^{k}^{u} ^{o} ^{o}^{o} "o"r:selling
price _{}
Dealer' s cost _{,}_{r}_{o}_{o}
Dealer'scosl
Determining Percent Markup
Holdren Hardware stores pay _{$}_{4}_{8}_{.}_{7}_{6} for glass fueplace screens. They regularly sell them
for _{$}_{7}_{9}_{.}_{8}_{8}_{.} _{A}_{t} a _{s}_{a}_{l}_{e} they _{s}_{e}_{l}_{l} them for _{$}_{6}_{9}_{.}_{9}_{9}_{.} Find the following.
a) The percent markup on the regular price
b) The percent _{m}_{a}_{r}_{k}_{u}_{p} _{o}_{n} the sale price
c) The percent _{d}_{e}_{c}_{r}_{e}_{a}_{s}_{e} _{o}_{f} _{t}_{h}_{e} _{s}_{a}_{l}_{e} price from the regular price
Solution
a) _{W}_{e} _{d}_{e}_{t}_{e}_{r}_{m}_{i}_{n}_{e} _{t}_{h}_{e} percent _{m}_{a}_{r}_{k}_{u}_{p} _{o}_{n} the regular price as follows.
Percent markup _{=} ^{s}^{7}^{9}^{.}^{8}^{8} ^{} ^{$}^{4}^{8}^{.}^{7}^{6} rl00
$48.76
rc 0.6382x100
x 63.8%o
i
_{\}
Thus, the percent rnarkup was about 63.8%. b) We determine the percent markup on the sale price as follows.
Mathenratics of _{f}_{i}_{n}_{a}_{n}_{c}_{e}
l)ago 3
Percent markup ^{:}
^{$}^{6}^{9}^{.}^{9}^{9} ^{} ^{$}^{4}^{8}^{.}^{7}^{6} x 100
$48.76
_{=} 0.4353x100
43.5%o
_{T}_{h}_{u}_{s}_{,} _{t}_{h}_{e} percent _{m}_{a}_{r}_{k}_{u}_{p} was about 43.5Yo. c) Based on the regular price, we determine the percent decrease of the sale price
Percent _{d}_{e}_{c}_{r}_{e}_{a}_{s}_{e} _{:}
s69.99 _{} $79.88 _{x} _{1}_{0}_{0}
*
s79.88
0.1238x100
^{x} l2.4Yo
The _{s}_{a}_{l}_{e} price is abolt 12.4%o lower than the regular price.
In daily life we may need to know how to solve any one of the following
problems _{i}_{n}_{v}_{o}_{l}_{v}_{i}_{n}_{g} percent:
three types of
_{l}_{.}_{W}_{h}_{a}_{t}_{i}_{s} _{a} _{1}_{5}_{Y}_{o} _{n}_{p} _{o}_{n} a restaurant bill of$24.66? The problem can be stated as _{1}_{5}_{%} _{o}_{f} _{5}_{2}_{4}_{.}_{6}_{6} is what number?
2. IfNancy Jobnson made a sale of$500 and received a commission of$25, what percent
_{o}_{f} the _{s}_{a}_{l}_{e} _{i}_{s} the commission? The problem can be stated as
What percent of$500 is _{$}_{2}_{5}_{?}
_{3}_{.} _{I}_{f} _{t}_{h}_{e} _{p}_{r}_{i}_{c}_{e} _{o}_{f} _{a} jacket _{w}_{a}_{s} _{r}_{e}_{d}_{u}_{c}_{e}_{d}_{'}_{b}_{y} _{2}_{5}_{%} _{o}_{r} _{$}_{1}_{2}_{.}_{5}_{0}_{,} *rhat was the original price of
_{t}_{h}_{e} jacket? _{T}_{h}_{e} problem can be stated as
25% of what number is 12.50
Rormd answers to tle nearest tenth of a percenl
1. Toothpaste Sales ln 1997, Proctor & Gamble sold about $370 million worth ofCrest
toothpaste. The total sales for all types oftoothpaste in 7997 werc $1.5 billion. What
percent _{o}_{f} all toothpaste sales did Crest account for in 1997?
2. Preschool Child Care
In 1999, 18.6% of all preschool age children with working
mothers were cared for by their fathers while their motlers worked. If the estimated _{n}_{u}_{m}_{b}_{e}_{r} _{o}_{f} _{p}_{r}_{e}_{s}_{c}_{h}_{o}_{o}_{l} _{a}_{g}_{e} _{c}_{h}_{i}_{l}_{d}_{r}_{e}_{n} _{w}_{i}_{t}_{h} working mothers was 10,398,000' how many
children were cared fo{y their fathers v/hile their mothers worked?
_{3}_{.} _{U}_{.}_{S}_{.} _{P}_{o}_{p}_{u}_{l}_{a}_{t}_{i}_{o}_{n} _{I}_{n}_{c}_{r}_{e}_{a}_{s}_{e}
_{T}_{h}_{e} population _{o}_{f} the United States rose from
_{a}_{p}_{p}_{r}_{o}_{x}_{i}_{m}_{a}_{t}_{e}_{l}_{y} _{2}_{4}_{8}_{.}_{7} _{m}_{i}_{l}_{l}_{i}_{o}_{n} _{i}_{n} 1990 to approximately 270.3 million in 1998.
_{a}_{)} _{F}_{i}_{n}_{d} _{t}_{h}_{e} percent _{i}_{n}_{c}_{r}_{e}_{a}_{s}_{e} _{i}_{n} population from 1 990 to 1998.
_{b}_{)} _{W}_{h}_{a}_{t} _{w}_{i}_{l}_{l} _{t}_{h}_{e} _{p}_{o}_{p}_{u}_{l}_{a}_{t}_{i}_{o}_{n}
_{i}_{n}
from 1990 to 1998?
_{t}_{h} _{e} yer _{2}_{0}_{0}_{6} if _{i}_{t} increases
at the same percent as it did
\'lall: cn ia rics of liinlncc
Pasc 4
4.
Decreasing Sales Volume
In 1996 Montgomery Ward had a sales volume of
_{$}_{6}_{.}_{6} billion. In 1997 the sales volume was _{$}_{5}_{.}_{7} billion. Find the percent decrease fiom
1996to 1997.
5. Tax and Tip
According to the Original Tipping Page (www.tipnins.org\, itis
proper to tip waiters and waihesses 1520Yo of the total restaurant billincluding the tm. Mary and Keith's dinner costs _{$}_{4}_{3}_{.}_{5}_{0} before tax, and the tax rate is 6%.
a) What is the tax on Mary and Keith's dirurer?
b) What is the total bill, including tax, before the tip?
c) If Mary and Keith decide to tip 1 5% of dre total bill, how much is the tip?
d) What is the total cost of the dinner including the tip?
Group _{A}_{c}_{t}_{i}_{v}_{i}_{t}_{y} (Journal Iterr)
6. Comparing Mmlcdowns
a) a _{c}_{o}_{a}_{t} _{i}_{s} _{m}_{a}_{r}_{k}_{e}_{d} _{d}_{o}_{w}_{n} _{1}_{0}_{%}_{,} and the customer _{i}_{s} given _{a} _{s}_{e}_{c}_{o}_{n}_{d} discount of 15%o. Is
this the same as a single discount of 25%o? Explain.
b) The regular price _{o}_{f} _{a} chair is _{$} I _{8}_{9}_{.}_{9}_{9}_{.} _{D}_{e}_{t}_{e}_{r}_{m}_{i}_{n}_{e} the _{s}_{a}_{l}_{e} price ofthe chair ifthe
regular price is reduced by 10% and this price is then reduced another 15olo.
c) Determine the sale price of the chair ifthe regular price of _{$} 189.99 is reduced by 25%.
d) Examine the answers obtained in parts (b) and (c). Does your answer to part (a)
appear to be correct? Explain.
7. Selling Ties
The Tie Shoppe paid _{$}_{5}_{9}_{0}_{1}_{.}_{7}_{9} _{f}_{o}_{r} a _{s}_{h}_{i}_{p}_{m}_{e}_{n}_{t} of500 ties and
wants to make a profit of 40% of the cost of the whole shipment The store is having two special sales. At the first _{s}_{a}_{l}_{e} it plans on selling 100 ties for _{$}_{9}_{.}_{0}_{0} eacb, and at the second
special sale it plans on sellingl50 ties for _{$}_{1}_{2}_{.}_{5}_{0} each What should be the selli:rg price of the other 250 ties for the Tie Shoppe to make a 40o/o profit on the whole sbipment?
Simple fnterest Formula
Interest _{=}
principal x _{r}_{a}_{t}_{e} x _{t}_{i}_{m}_{e}
In this formula, _{t}_{h}_{e} principal,
p, is the amormt _{o}_{f} _{m}_{o}_{n}_{e}_{y} _{l}_{e}_{n}_{t}_{,} _{t}_{h}_{e} rate, r, is the rate of
interest expressed as a percent, and the time, l, is the _{n}_{u}_{m}_{b}_{e}_{r} of days, months, or years for
which the _{m}_{o}_{n}_{e}_{y} will be lent Time is expressed in _{t}_{h}_{e} _{s}_{a}_{m}_{e} period as the rate. For
example, _{i}_{f} _{t}_{h}_{e} _{r}_{a}_{t}_{e} _{i}_{s} _{2}_{%} per month, the _{t}_{i}_{m}_{e} _{m}_{u}_{s}_{t} _{b}_{e} _{e}_{x}_{p}_{r}_{e}_{s}_{s}_{e}_{d} in months. Typically,
rate means the annual rate unless otherwise _{s}_{t}_{a}_{t}_{e}_{d}_{.} _{P}_{r}_{i}_{n}_{c}_{i}_{p}_{a}_{l} and interest are expressed in
dollars in the _{U}_{n}_{i}_{t}_{e}_{d} States. $imple interest is called ordinary interest.
ordinary interesg _{e}_{a}_{c}_{h} month has 30 days and a year has
For computing
6e6[s or 360 days. On the
_{d}_{u}_{e} _{d}_{a}_{t}_{e} _{o}_{f} _{a} _{s}_{i}_{m}_{p}_{l}_{e} _{i}_{n}_{t}_{e}_{r}_{e}_{s}_{t} note the borrower must repay the principal plus the interesL
_{f}_{t}_{a}_{m}_{p}_{l}_{e} _{1}
_{C}_{a}_{l}_{c}_{u}_{l}_{a}_{t}_{i}_{n}_{g} Interest _{a}_{n}_{d} Payback Amount
Iy'atlt,3matics of Finance
Page 5