Percent - Business Math Presentation

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 © 2009 Pearson Education, Inc. Upper Saddle River, NJ
Cleaves/Hobbs 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.
Change to equivalent percents
 Nx1=N
 So, if 1 = 100%, then ½ 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.
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.
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%
Try these examples
 .48 =
 48%
 7.16 =
 716%
 0.0034 =
 0.34%
Write a fraction as a percent
 ¼ = ¼ x 100%/1 = 25% [Reduce and
multiply]
 For the following, change the mixed number

to an improper fraction and multiply by 100%.
3 ½ = 3 ½ x 100%/1 = 7/2 x 100%/1 =350 %
 ⅔ = ⅔ x 100% / 1 = 200%/3 = 66⅔%
Try these examples
 ⅜=
 37.5%
 ⅞=
 87.5%
 ¾=
 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 = ½
 50%/100% = 50/100 = 0.50 = 0.5
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.
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
Try these examples
 150% =
 1½
 12.5% =
 ⅛
 ¼%=
 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
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.
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.
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
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
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.
Find the base
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.
Try these examples
 1700 dentists attending a convention last
month prefer fluoride treatments for
preschoolers. That’s 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
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?
Use the solution plan
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.
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?
 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
Try these problems
 Identify what’s 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 P = 0.35 x 350 = 122.5
 25% of what number is 125?
 B = P/R B = 125/.25 = 500
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.
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
Decreases in percent
problems
 Some examples of decreases include:
 Payroll deductions
 Markdowns
 Discounts on sale items
How to find
the amount of increase
 To find the amount of increase:

amount of increase = new amt – beg. amt.
Example: Joe’s salary has been $400 a

week. Beginning next month, it will be $450
a week. The amount of increase is $50 a
week.
How to find the
amount of decrease
 To find the amount of decrease:

Amount of decrease = beg. amt - new amt.
 Example: Roxanne’s 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.
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.
Here’s 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.
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
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.
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.
Here’s 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
Here’s 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)
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 15th of
the month. If your normal invoice is $3,600, how
much would you pay if you got the discount?
 $2,880
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.
Here’s 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.
Solution plan
 What are you looking for?
 Percent of increase in profits.
 What do you know?
 Original amt. = $1,525; New amt.=$1,708
 Solution plan
 Find amt. of increase; Find percent of increase.
 Solution
 $1,708-$1,525 = $183
$183/$1,525 = 0.12 =12%
 Conclusion
 The rate of increase in profit is 12%.
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%

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6.

 Percents are used to calculate markups,

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

 0.98 = 0.98 x 100% = 098.% = 98%

 For the following, change the mixed number

 ⅔ = ⅔ x 100% / 1 = 200%/3 = 66⅔%

 When a number is divided by 1, the quotient

 Identify the rate, base and percentage in

 If 58% of the office workers prefer diet soda

2. What do you know?

 80%, or 560, of our current clients take

2. What do you know?

 In the new product focus group, 6,700 of the

 Find the amount of increase or decrease in

 Examples of increases in business

 To find the amount of increase:

Example: Joe’s salary has been $400 a

 To find the amount of decrease:

 Example: Roxanne’s new purse originally

 Often in increase or decrease problems, we are

 Find the rate of the new amount.

 A wholesaler is offering you a 20% discount if

 During the month of May, a graphic artist

 Use the solution plan to figure out the

 Sales in the East Region were $10,800 in

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