Percentage, Base

and Rate

Business Mathematics Week 3

Base (B)

– refers to that number of which a certain number of

hundredths is taken. Base and percentage are
compared to obtain the rate.
– As the basis of comparison, base is the number
generally preceded by the word “of”, “as much as”, “as
large as”, “as many as”, and “as great as”.
– Also it is regarded as a whole.
Rate (R)

– Rate (R) - refers to the number of hundredths taken.

– It is the result of comparing a number (percentage
which is regarded as the portion or part) to another
number (base which is regarded as the whole).
– It can be expressed in percent, decimal, or fraction.
Percentage (P)

– is the part considered in its quantitative relation to the whole.

In other words, it is the part of the whole and the number
being compared to another number (base). The result obtained
when the rate is applied to the base is the percentage.
– It is expressed in the same unit as the base, that is, if the base is
in pieces, the percentage is in pieces, if the base is in number of
students, the percentage is in number of students.
– It is never expressed in percent.
Example:

If we take 50 as the whole and we take 20 as the part,

– the base is 50 (whole),
– percentage is 20 (part), and
– rate is 20/50 (part/base).

The formula is
P=BR
If we take 50 as the whole and we take 20 as the part, the base
is 50 (whole),percentage is 20 (part), and rate is 20/50
(part/base).

The formula is
P=(B)(R)

20=(50)(20/50)
20=(50)(.40)
20=20
Example:
50% of 24 is what?

Find P
P = BR
P = 24 x .50
P = 12
Example:
If I have P25.00 which represents ¼ of my entire money, how much money do I have
in all? We are looking for the base (amount of money in all), ¼ is the rate, and the
percentage is P25.00 (a part of the whole).

Find B Find B
P = BR B = 25
R R ¼
B=P B = 25 ÷ .25
R B = 100
Example:
What part of 400 is 50?

-Here, 400 is the base representing the whole while 50 is the percentage
which the part of a whole.

R = P/B
R = 50/400
R= 1/8 or .125 or 12.5%
Finding the rate of Increase/Decrease

To compute the rate of increase/decrease,

1. first subtract the new quantity from the original
quantity to get the difference between the original
quantity and the new quantity.

2. This will give us an increase (positive) or decrease

(negative).
 
Rate of increase/decrease =

Where Q1 = the original quantity

Where Q2 = the new quantity

-The increase/decrease is the percentage and the original

quantity is the base. In our computation we will always denote
a decrease by enclosing our figure in parenthesis.
 Example:
Zeny’s current salary is P3,600.00 a month. Her
previous salary was P3,200.
What is the rate of increase in her salary?  
Solution:
Given: Current Salary = P 3,600 = Q2
Previous Salary = 3,200 = Q1
Find: Rate of Increase R 
 
R
 
R