LECTURE #2 RELATING: FRACTION, DECIMAL, PERCENT

1. Recall/ Review: Worded problem, use the jamboared in solving the problem.
a. If a class of 120 students who took the Business Math exam and ⅗ passed the
exam.What part of the class failed the exam.How many students passed and how many
failed the exam? Show your solution and explain.

b. Andre bought a lot measuring 450 square meters. If 25 square meters is allotted for a
storage room, what fraction of the entire lot is the storage room? Show your solution and
explain

2. Definition of terms:
a. Decimal- is a representation of fraction whose denominator is a multiple of 10
b. Ordering of decimal- involves comparing numerical value in each place value from left to
right.
c. Percent means”per hundred” is a representation of a fraction whose denominator is 100,
thus, expressing a number in percent is like comparing it with 100,
3. Conversion:

1.Fraction to decimal:
A. convert to an equivalent fraction whose denominator is a power of ten, then convert to
decimal.
 B. Convert terminating decimal

C. Convert non-terminating decimal

2. Percent to decimal

3. Decimal to percent to fraction

Examples: Consider the table below:

Fraction Decimal Percent

2/5 0.4 40%

23/100 0.23 23%

12083/100000 0.12083 12 1/12%

23/45 0.5111 51.11/100 or 51.11%

 3/8 0.375 37.5%

9/20 0.45 45%

Problems involving fractions, decimal and percent

1. If you were asked to buy 2 ½ kilos of pork which cost P275/kilo, how much should you pay and
how much will your change be if you give the cashier1000 peso bill?
2. Those seen in department stores like a shirt’s original price is P999 and there’s a 20% discount,
how much is the discount and how much is the discounted price?
3. Suppose you want to have 15 servings using a recipe that is only good for 5 servings, what must
be done?
4. In a certain grocery store, Mary is choosing between two brands of laundry detergent that would
give her a lesser cost. Brand A with a net content of 2.2kg cost P144.75 while brand B with a net
content of 900 grams cost P67.80. Which brand will Mary choose? Why?

PERCENTAGE IN BUSINESS
Percentage is the fractional portion of a whole which is called the BASE. This fractional portion
is being described by the RATE. In equation: P = B*r, the base of the comparison; the rate is the percent
indicating the number or quantity for every one hundred; while percentage refers to the fractional portion
of the base in the situation.
(study how to compute for the percentage, base and rate)

RETAIL PRICES

Formulas to be consider:
1. Markon = Selling price - Cost
Selling Price = Markon + Cost
Cost =  Selling price - Markon

Example:   T-shirt = P75      Markon = P20    Selling price =  P95

  
Given: I purchased a dozen t-shirts. How much will be the profit? Determine the total cost, total selling
price.

Profit = P240  markon = P240    Total Cost = P900   Total selling price = P1140

2. Markon based on Cost = cost x markon rate

Given 1:  Cost of an item = P98.50      Markon rate = 25%
                            Markon = P24.63

Markon rate = (Markon / Selling price)* 100%

Given 2:   Markon based on cost = P65.00      Cost = P154.50
       Markon rate = 42.07%

Given 3:    Cost =   P650       Markon rate = 12 ½% (12.5)

                              Markon based on cost = 81.25

3. Selling Price = Cost of the item + Markon

              Cost = Selling Price - Markon
              Markon = Selling Price - Cost     

Given:   Selling Price = P550     Cost = P390   

              Markon =160

4.  Markon based Selling Price = Selling Price - Cost

5. Markon rate = (Markon / Selling price)*100%

             Given :    Selling Price = P300        Cost price = P180
                                Markon = P120       Markon rate = 40%

6. Markdown = Original selling price - New price

          Given:   Orig Price = P160  New price = P110
Markdown price =  P50

            Markdown rate = (Markdown price / Original selling price) * 100%

Given:   Orig price = P500     New price = P350
                                    Markdown price = 150        Markdown rate = 30%

7. Markup Price = Increased selling price - Previous selling price

Markup rate = (Markup price / Previous selling price) * 100%

Given:   Previous selling price = P327    Increased selling price = P400

                         Markup price = P73    Markup rate = 22.32%

Application in Business problem:

A.  Find the markon and the selling price

Number Cost Percent of markon based Selling price

1 P500 12% (0.12) 500.12

2 P250 15 ½% (0.155) 250.16

3 P758 14% (0.14) 758.14

4 P169.50 21 ¼% (0.2125) 169.71

5 P185 18% (0.18) 185.18

6 P800 32 ⅘% (0.238) 800.24

 7  P699.50 20% (0.20) 699.70

8 P399.50 16% (0.16) 399.66

9 P450 25 ¾% (0.2575) 450.26

10 P200 28 ½% (0.285) 200.29

Cost Price Selling Price Amount of Markon Markon Rate

P200 P280 P80 28.57%

P150 P250 P100 40%

P1700 P2000 P300 15%

Worded Problem:

1. At what price should an office equipment sales representative sell a desk computer purchased at
the cost of P19, 850 and if the markon rate is 35%? 

Given:    Cost: P19, 850       Markon rate: 35% (0.35)

Selling price: P19850.35

2. SM bought children’s shoes at P199.95a pair. At what price should the pair of shoes be sold if the
manager wants a 30% markon rate on the cost imposed?

Given:     Cost: P199.95      Markon rate: 30% (0.30)

Selling price: 200.25

3. Emy purchased ballpens at a cost of P180 a dozen. At what price will she have to sell each
ballpen in order to realize a 40% profit on cost?

 B. Markdown and markdown rate 

Complete the table:

Markup price = Increased selling price - Previous selling price

Markup rate = (Markup price / Previous selling price) * 100%

Markdown price = Original selling price - New price

Markdown rate = (Markdown price / Original selling price) * 100%

No Original Price Reduced Price Markdown Price Markdown Rate

1 P650 P500 P150 23.08%

2 P1,200 P950 P250 20.83%

3  P299.50 P199.50 P100 33.39%

4 P2000 P1550 P450 22.5%

5 P215.50 P194.95 P20.55 9.54%

New Selling Price Regular Selling Price Markup Price Markup Rate

1 P302.50 P250.00 P52.5 21%

2 P519.50 P450.00 P69.5 15.4%

3 P5500 P4999.50 P500.5 10.01%

4 P178.85 P149.95 P28.9 19.27%

5 P6500.00 P5999.50 P500.5 8.34%