Lesson Goal
In this lesson you will convert among percents, decimals, and fractions; solve the three basic percent problems (finding the part, the percent, or the whole); and calculate percent increase and decrease.
You will also work backward from a changed amount to the original and apply percents to discounts, sales tax, tips, markups, commission, and repeated changes.
Percent Means Per Hundred
Percent means "per hundred," so 42 percent is 42 out of every 100:
To change a percent to a decimal, move the decimal point two places left: 7 percent is 0.07, 125 percent is 1.25, and 0.6 percent is 0.006. To go from a decimal to a percent, move it two places right.
A fraction becomes a percent by first becoming a decimal:
Percents over 100 describe more than the whole.
The Three Core Percent Relationships
Every basic percent problem links three numbers: the part, the percent (as a decimal), and the whole.
Part equals percent times whole. Percent equals part divided by whole. Whole equals part divided by percent.
Decide which of the three is missing, then use the matching form. The word "of" usually sits right before the whole.
Finding a Percent of a Number
Convert the percent to a decimal and multiply by the whole.
As a check, 10 percent of 420 is 42, and three times that is 126.
Finding What Percent One Number Is of Another
Divide the part by the whole, then change the decimal to a percent.
Example: 27 of 36 vehicles are fueled. What percent is that?
which is 75 percent. The whole is the total group, the number after "of."
Finding the Original Whole
When you know a part and its percent, divide the part by the percent written as a decimal.
Example: 54 is 45 percent of what number?
Check:
The whole must be larger than the part when the percent is under 100.
Percent Increase
Percent increase compares the amount of growth to the starting value:
percent increase = (new − old) ÷ old × 100
Example: a crew grows from 50 to 65 members. The increase is 15, and
so the crew grew 30 percent. Always divide by the original value, not the new one.
Percent Decrease
Percent decrease uses the same idea: (old − new) ÷ old × 100.
Example: a fuel reserve drops from 80 gallons to 68 gallons. The decrease is 12, and
a 15 percent decrease.
Reverse Percent Problems
In a reverse problem you know the amount after a change and must find the original. Write the new amount as a percent of the original, then divide.
Example: after a 30 percent increase, a budget is 182 thousand dollars. The new amount is 130 percent of the original, so the original is
thousand dollars.
A common mistake is to take 30 percent off 182, which gives about 127.4, not 140. The 30 percent was figured on the original, so you must divide.
Discounts, Sales Tax, Tips, and Markups
A discount lowers a price: a 64 dollar jacket at 15 percent off costs
Sales tax raises it: 6 percent tax on 35 dollars makes
A 20 percent tip on a 42.50 dollar bill is
A 40 percent markup on a 25 dollar cost gives a price of
Commission and Earnings
Commission is a percent of sales paid as earnings. Multiply the sales total by the rate, then add any base pay.
Example: a salesperson earns a 400 dollar base plus 5 percent of sales. On 12,600 dollars in sales, commission is
so total pay is 1,030 dollars.
Repeated Percentage Changes
When one percent change follows another, the second change applies to the new amount, not the original. Multiply by each change factor in turn.
Example: 500 rises 10 percent, then falls 10 percent.
The result is not 500, because the 10 percent decrease was taken from a larger base. Never just add or cancel the percents.
Fast No-Calculator Percent Methods
Find 10 percent by moving the decimal point one place left, then build other percents from it. Five percent is half of 10 percent, 15 percent is 10 percent plus 5 percent, and 1 percent moves the point two places.
Use fraction equivalents: 25 percent is one fourth and 50 percent is one half.
You can also swap: 8 percent of 50 equals 50 percent of 8, which is 4.
Estimate Before Calculating
Round the percent and the whole to friendly values first. For 19 percent of 412, think 20 percent of 400, which is 80. The exact answer, 78.28, is close.
Also check direction: an increase must give a larger result, a discount a smaller one, and a part must be smaller than its whole when the percent is under 100.
Worked Example 1 — Percent of a Quantity
Problem: a battalion of 640 soldiers has 15 percent on leave. How many are on leave?
Step 1: Change the percent to a decimal. Percent means per hundred, so 15 percent is
Step 2: Multiply the decimal by the whole. "Of" means multiply:
Step 3: Make it easy by splitting 15 percent into 10 percent plus 5 percent. 10 percent: move the decimal one place left. 5 percent: half of 10 percent.
Answer: 96 soldiers are on leave.
Check:
and dividing by 100 gives 96. Same answer.
Worked Example 2 — What Percent?
Problem: 18 of 24 trucks pass inspection. What percent pass?
Step 1: Write part over whole. The part is the trucks that pass (18) and the whole is all the trucks (24):
Step 2: Simplify. Both 18 and 24 divide by 6:
Step 3: Change to a decimal, then to a percent.
To turn a decimal into a percent, multiply by 100 (move the point two places right).
Answer: 75 percent pass.
Check: 75 percent of 24 is
trucks. It matches.
Worked Example 3 — Percent Increase
Problem: fuel rises from 3.20 to 3.60 dollars per gallon. What is the percent increase?
Step 1: Find the amount of change. Subtract old from new:
Step 2: Divide the change by the original (old) price, because percent change is always measured from where you started:
Step 3: Clear the decimals by multiplying top and bottom by 100, then simplify. Both 40 and 320 divide by 40:
Step 4: Change to a percent.
and moving the point two places right gives 12.5 percent.
Answer: a 12.5 percent increase.
Check: 10 percent of 3.20 is 0.32 and 2.5 percent is 0.08, so 12.5 percent is
Adding 0.40 to 3.20 gives 3.60. It matches.
Worked Example 4 — Reverse Discount
Problem: after 35 percent off, boots cost 52 dollars. What was the original price?
Step 1: Find what percent you actually pay. With 35 percent off, you pay
of the original price.
Step 2: Write an equation. Let x be the original price. 65 percent is 0.65:
Step 3: Divide both sides by 0.65. Move the decimal point two places right in both numbers to get whole numbers:
Step 4: Divide by hand.
Answer: the original price was 80 dollars.
Check: 35 percent of 80 is
off, and
It matches. Watch out: adding 35 percent of 52 to 52 gives about 70.20 dollars, which is wrong, because the discount was taken from the original price.
Worked Example 5 — Tax and Discount Together
Problem: a 120 dollar radio is marked 20 percent off, and then 7 percent sales tax is charged on the sale price. What is the final cost?
Step 1: Find the discount. 10 percent of 120 is 12, so 20 percent is twice that:
Step 2: Find the sale price by subtracting the discount. (This is the same as paying 80 percent:
)
Step 3: Find the tax on the sale price, not the original price. 7 percent is 0.07:
By hand:
then move the decimal two places left to get 6.72.
Step 4: Add the tax to the sale price.
Answer: the final cost is 102.72 dollars.
Check:
the same. Estimate: about
which is close.
Worked Example 6 — Repeated Change
Problem: an inventory of 2,000 items falls 25 percent, then rises 20 percent. What is the final count, and what is the overall change?
Step 1: Apply the drop. 25 percent is one quarter:
Step 2: Apply the rise to the new count, 1,500, not the original. 10 percent of 1,500 is 150, so 20 percent is 300:
Step 3: Find the overall change from the starting count.
Answer: the final count is 1,800 items, a drop of 200 items, which is a 10 percent decrease.
Check: using multipliers,
Watch out: simply combining the percents (
) is wrong, because the 20 percent rise is taken from a smaller number.
Common Percentage Traps
Wrong base for change: dividing the change by the new value instead of the original. Percent change always uses the starting value.
Reverse percent by subtraction: adding 20 percent back to a discounted price does not recover the original. Divide by the remaining percent, such as 0.80.
Adding successive percents: a 10 percent raise followed by a 10 percent cut is not zero change. Multiply the factors.
Decimal slips: 5 percent is 0.05, not 0.5. Move the point two places.
Taxing the wrong amount: when a discount and a tax both apply, find the sale price first, then apply tax to it.
Mixing up part and whole: in "what percent of 60 is 15," 60 is the whole and goes in the denominator.
Quick Review
Percent means per hundred. Move the decimal point two places to switch between percents and decimals.
Part equals percent times whole; percent equals part over whole; whole equals part over percent.
Percent change is the change divided by the original value. To undo a change, divide the new amount by its percent of the original, such as 0.80 after a 20 percent decrease or 1.25 after a 25 percent increase.
Discounts multiply by 1 minus the rate, and taxes and markups by 1 plus the rate. Commission is the rate times sales. For repeated changes, multiply the factors in order. Use 10 percent and simple fractions to estimate.
