CHT

6.
1 Percent Equivalents
Write a whole number, fraction or decimal

as a percent.
Write a percent as a whole number, fraction

or decimal.
1 = 100%
0.8 = 80% = 4/5
Business Math, Eighth Edition
Cleaves/Hobbs
2009 Pearson Education, Inc. Upper Saddle River, NJ

07458 All Rights Reserved
6.1.1 Write a Whole Number,

Fraction or Decimal as a Percent
Percents are used to calculate markups,

markdowns, discounts and many other business
applications.
Hundredths and percent have the same meaning:
per hundred.
100 percent is the same as 1 whole quantity,

100% = 1.
When we multiply a number by 1, the product has

the same value as the original number.
Cleaves/Hobbs

Change to equivalent
percents
Nx1=N
So, if 1 = 100%, then x 100% = 50%.
Also, if 1 =100%, then 0.5 x 100% = 050.%

= 50%
In each case when we multiply by 1 in some

form, the value of the product is equivalent
to the value of the original number even
though the product looks different.

Cleaves/Hobbs

Write a number as its

percent equivalent
Multiply the number by 1 in the form of 100%.
The product has a % symbol.
Example:
Write 0.65 as a percent.
0.65 = 0.65 x 100% = 065.% = 65%
The decimal point moves two places to the

right.
Cleaves/Hobbs

Write the decimal or whole

number as a percent
0.98 = 0.98 x 100% = 098.% = 98%
1.52 = 1.52 x 100% = 152.% = 152%
0.04 = 0.04 x 100% = 004.% = 4%
5 = 5.00 x 100% = 500.% = 500%
0.003 = 0.003 x 100% = 000.3% = 0.3%

Cleaves/Hobbs

Try these examples
.48 =
7.16 =
716%
0.0034 =

Cleaves/Hobbs
48%
0.34%

Write a fraction as a percent
= x 100%/1 = 25% [Reduce and

multiply]
For the following, change the mixed number

to an improper fraction and multiply by 100%.
3 = 3 x 100%/1 = 7/2 x 100%/1 =350 %
= x 100% / 1 = 200%/3 = 66%

Cleaves/Hobbs

Try these examples
37.5%
87.5%
=
=

Cleaves/Hobbs
75%
6.1.2 Write a Percent as a Whole

Number, Fraction or Decimal
When a number is divided by 1, the quotient

has the same value as the original number.
N 1 = N or N/1= N
We can also use the fact that N 1 = N to

change percents to numerical equivalents.
50% 100% = 50%/100% = 50/100 =
50%/100% = 50/100 = 0.50 = 0.5

Cleaves/Hobbs

Write the percent as a number
Divide by 1 in the form of 100% or multiply by

1/100%.
The quotient does not have the % symbol.
Examples:
37% = 37% 100% = .37 = 0.37
127% = 127% 100% = 1.27
To divide by 100 mentally, move the decimal

point two places to the left.
Cleaves/Hobbs

Write the percent as a fraction

or mixed number
In multiplying fractions, we reduce or cancel

common factors from a numerator to a
denominator. Percent signs also cancel.
Division is the same as multiplying by the

reciprocal of the divisor.
Similarly, % % = 1
Example:
65% = 65% 100% = 65%/1 x 1/100% = 13/20
Cleaves/Hobbs

Try these examples
150% =
1
12.5% =
%=

Cleaves/Hobbs
1/400
6.2 Solving Percentage Problems
Identify the rate, base and percentage in

percentage problems.
Use the percentage formula to find the

unknown value when two values are known.
P=RxB
Cleaves/Hobbs

6.2.1 Identify the rate, base and

percentage in percentage problems
In the formula P = R x B:
B refers to the base which is the original

number or one entire quantity.
P refers to percentage and represents a

portion of the base.
R refers to rate and is a percent that tells

us how the base and percentage are related.

Cleaves/Hobbs

Find the percentage
The original formula is P = R x B
To find the percentage, we multiply the rate by

the base.
If 60 people registered for this course and 25%

are Spanish-speaking, what number of students
are Spanish-speaking?
Identify the base; identify the rate.
Use the solution plan to find the answer.

Cleaves/Hobbs

Find the percentage

1.
What are you looking for?

The number of Spanish-speaking students
2. What do you know?

The base is 60 (rate); and the rate is 25% or 0.25.
3. Solution plan
P = 60 x 25% (or .25)
4. Solve
P = 15
5. Conclude
15 students are Spanish-speaking
Cleaves/Hobbs

Try these problems
If 40% of the registered voters in a

community of 5,600 are Democrats, how
many voters are Democrats?
2,240
If 58% of the office workers prefer diet soda

and there are 600 workers, how many prefer
diet soda?
348

Cleaves/Hobbs

Find the base
Refer to the original formula: P = R x B.
To find B, we can change the formula so that it

becomes: B = P/R
To find the original number, we can divide the

percentage by the rate.
Example: Forty percent, or 90 diners preferred

outdoor seating at the new restaurant. How
many diners were interviewed in all?
Use the solution plan.

Cleaves/Hobbs

Find the base

1.

The total number of diners surveyed.

The percentage (90) and the rate (40%).
3. Solution plan
Base = P/R;
Base = 90/.40
4. Solve
B = 225
5. Conclude
225 diners were interviewed in all.
Cleaves/Hobbs

Try these examples
1700 dentists attending a convention last

month prefer fluoride treatments for
preschoolers. Thats 4 out of every 5 dentists.
How many dentists attended in all?
2,125
80%, or 560, of our current clients take

advantage of our cash discount program for
prompt payment. What is our current client
base?
700

Cleaves/Hobbs

Find the rate
Refer to the original formula: P = R x B.
To find R, we can change the formula so that it

becomes: R = P/B
To find the rate, we can divide the percentage

by the base.
Example: 55 insurance agents were able to

meet with their clients to inform them of policy
changes. If there are 220 agents in all, what
percent does this represent?
Cleaves/Hobbs

Use the solution plan

1.

The percent or rate of agents who talked to their clients.

The base or total number of agents and the percentage who
talked to their clients.
3. Solution plan
R = P/B ; R = 55/220
4. Solve
R= .25
5. Conclusion
25% of the agents talked to their clients.
Cleaves/Hobbs

Try these examples
The plant foreperson reported that 873 of the

900 items tested met the quality control
specifications for production. What is the rate of
acceptable items?
97%
In the new product focus group, 6,700 of the

8,375 customers rated the product as very
good or superior. What was the rate?

Cleaves/Hobbs
80%

Identify what is missing
Sometimes, you will be asked to find one of the

elements: rate, base or percentage when you
know the other two.
Learn to read the problem to identify the
missing element.
Example: 30% of 70 is what number?
30% is the rate.
70 is the base.
You are looking for P or percentage.
P=RxB
P = 0.3 x 70 = 21
Cleaves/Hobbs

Try these problems
Identify whats missing and then solve the

problem using the correct formula.
60 is what percent of 80?
R = P/B R = 75%
35% of 350 is what?
P=RxB
25% of what number is 125?
B = P/R B = 125/.25 = 500

Cleaves/Hobbs
P = 0.35 x 350 = 122.5

6.3 Increases and Decreases
Find the amount of increase or decrease in

percent problems.
Find the new amount directly in percent

problems.
Find the rate or the base in increase or

decrease problems.

Cleaves/Hobbs

6.3.1 Find the Amount of Increase

or Decrease in Percent Problems
Examples of increases in business

applications include:
Sales tax
Raise in salary
Markup on a wholesale price

Cleaves/Hobbs

Decreases in percent
problems
Some examples of decreases include:
Payroll deductions
Markdowns
Discounts on sale items

Cleaves/Hobbs

How to find
the amount of increase
To find the amount of increase:

amount of increase = new amt beg. amt.
Example: Joes salary has been $400 a
week. Beginning next month, it will be $450
a week. The amount of increase is $50 a
week.

Cleaves/Hobbs

How to find the

amount of decrease
To find the amount of decrease:

Amount of decrease = beg. amt - new amt.
Example: Roxannes new purse originally

cost $60, but it was on sale when she
bought it on Saturday for $39.99. The
amount of decrease (or markdown) is
$20.01.

Cleaves/Hobbs

Percent of change
The amount of change is a percent of the

original or beginning amount.
Find the amount (increase or decrease) from a

percent of change by:
Identifying the original or beginning amount
and the percent or rate of change.
Multiplying the decimal equivalent of the rate
of change by the original or beginning
amount.
Cleaves/Hobbs

Heres an example
Your company has announced a 1.5% cost of

living raise for all employees next month.
Your monthly salary is currently $2,300.
Starting next month, what will your new
salary be?
You will need to find the amount of increase

by multiplying the rate by the base.
To find the new amount, add the amount of

increase to the original amount.

Cleaves/Hobbs

Find the new amount
Current salary = $2,300 a month

Rate of change = 1.5%
Amount of raise =
Percent of change x original amount
.015 x $2,300 = $34.50 a month
Add $34.50 to the original amount of $2,300
to identify the new amount.
New amount = $2,334.50

Cleaves/Hobbs

6.3.2 Find the New Amount

Directly in Percent Problems
Often in increase or decrease problems, we are

more interested in the new amount than the
amount of change.
Find the new amount by adding or subtracting

percents first.
The original or beginning amount is always

considered to be the base and is 100% of
itself.
Cleaves/Hobbs

Find the new amount directly

in a percent problem
Find the rate of the new amount.
For increase:
100% + rate of increase
For decrease:
100% - rate of decrease
Find the new amount.
P=RxB
New amount = rate of new amt. x original amt.

Cleaves/Hobbs

Heres an example
Medical assistants are to receive a 9%

increase in wages per hour. If they were
making $15.25, what is the new per hour salary
to the nearest cent?
Rate of new amount = 100% + rate of increase
Rate of new amount = 100% + 9% = 109%
Rate of new amount = $15.25 x 109%
Change 109% to its decimal equivalent: 1.09
$15.25 x 1.09 = $16.6225 = $16.62

Cleaves/Hobbs

Heres another example

A new pair of jeans that costs $49.99 is
advertised at 70% off. What is the sale price to
the nearest cent of the jeans?
Rate of new amount = 100% - rate of decrease
= 100% - 70% = 30%
New amount = rate of new amt. x original amt.
New amount = 30% x $49.99
New amount = 0.3 x $49.99 = $14.997
New amount = $15.00 (nearest cent)

Cleaves/Hobbs

Try these examples
The property taxes at your business office will go

up 5% next year. Currently, you pay $3,400.
How much will you pay next year?
$3,570
A wholesaler is offering you a 20% discount if

you purchase new inventory before the 15 th of
the month. If your normal invoice is $3,600, how
much would you pay if you got the discount?
$2,880
Cleaves/Hobbs

6.3.3 Find the Rate or the Base in

Increase or Decrease Problems
Identify or find the amount of increase or

decrease.
To find the rate of increase or decrease, use the

percentage formula: R = P/B.
Rate = amount of change/original amount.
To find the base or original amount, use the

percentage formula: B = P/R.
Base = amount of change/rate of change.

Cleaves/Hobbs

Heres an example
During the month of May, a graphic artist

made a profit of $1,525. In June, she made
a profit of $1,708. What is the percent of
increase in profit?
Use the solution plan to figure out the

answer.

Cleaves/Hobbs

Solution plan
What do you know?
Find amt. of increase; Find percent of increase.
Solution
Original amt. = $1,525; New amt.=$1,708
Solution plan
Percent of increase in profits.
$1,708-$1,525 = $183
$183/$1,525 = 0.12 =12%
Conclusion
The rate of increase in profit is 12%.

Cleaves/Hobbs

Try these two examples
A popular detergent cost $5.99 last Saturday,

but today the same detergent costs $7.50.
What is the rate of increase?
25.2%
Sales in the East Region were $10,800 in

January and dropped to $9,700 in February.
What is the rate of decrease from January to
February?
10.2%

Cleaves/Hobbs


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6.

Write a whole number, fraction or decimal

Write a percent as a whole number, fraction

2009 Pearson Education, Inc. Upper Saddle River, NJ

6.1.1 Write a Whole Number,

Percents are used to calculate markups,

100 percent is the same as 1 whole quantity,

When we multiply a number by 1, the product has

2009 Pearson Education, Inc. Upper Saddle River, NJ

So, if 1 = 100%, then x 100% = 50%.

Also, if 1 =100%, then 0.5 x 100% = 050.%

In each case when we multiply by 1 in some

Business Math, Eighth Edition

2009 Pearson Education, Inc. Upper Saddle River, NJ

Write a number as its

Multiply the number by 1 in the form of 100%.

The product has a % symbol.

Write 0.65 as a percent.

0.65 = 0.65 x 100% = 065.% = 65%

The decimal point moves two places to the

2009 Pearson Education, Inc. Upper Saddle River, NJ

Write the decimal or whole

0.98 = 0.98 x 100% = 098.% = 98%

1.52 = 1.52 x 100% = 152.% = 152%

0.04 = 0.04 x 100% = 004.% = 4%

5 = 5.00 x 100% = 500.% = 500%

0.003 = 0.003 x 100% = 000.3% = 0.3%

Business Math, Eighth Edition

2009 Pearson Education, Inc. Upper Saddle River, NJ

Try these examples

Business Math, Eighth Edition

2009 Pearson Education, Inc. Upper Saddle River, NJ

Write a fraction as a percent

= x 100%/1 = 25% [Reduce and

For the following, change the mixed number

= x 100% / 1 = 200%/3 = 66%

Business Math, Eighth Edition

2009 Pearson Education, Inc. Upper Saddle River, NJ

Try these examples

Business Math, Eighth Edition

6.1.2 Write a Percent as a Whole

When a number is divided by 1, the quotient

We can also use the fact that N 1 = N to

50% 100% = 50%/100% = 50/100 =

50%/100% = 50/100 = 0.50 = 0.5

2009 Pearson Education, Inc. Upper Saddle River, NJ

Write the percent as a number

Divide by 1 in the form of 100% or multiply by

The quotient does not have the % symbol.

37% = 37% 100% = .37 = 0.37

127% = 127% 100% = 1.27

To divide by 100 mentally, move the decimal

2009 Pearson Education, Inc. Upper Saddle River, NJ

Write the percent as a fraction

In multiplying fractions, we reduce or cancel

Division is the same as multiplying by the

2009 Pearson Education, Inc. Upper Saddle River, NJ

Try these examples

Business Math, Eighth Edition

6.2 Solving Percentage Problems

Identify the rate, base and percentage in

Use the percentage formula to find the

2009 Pearson Education, Inc. Upper Saddle River, NJ

6.2.1 Identify the rate, base and