Page 1 of 9 MAT100 WEEK 9: Percent Slide 1 Introduction Welcome to week 9 of Math 100.

In the previous lesson, we discussed ratio, proportion, and unit analysis. In this lesson, we will discuss percent. Next slide. Slide 2 Objectives When you complete this lesson, you will be able to: Convert decimals and fractions to percents, and percents to decimals and fractions. Solve three basic types of percent problems. Solve problems that involve sales tax and commission. Calculate the percent increase or decrease. And calculate interest payments. Next slide. Slide 3 Percent Notation Percent means per hundred. Writing a number as a percent is a way of comparing the number with one-hundred. We can express it as a ratio. The ratio of N to 100 can be written as N over 100. The percent can also be expressed as a fraction notation. N percent is the same as N times onehundredth. To express it as a decimal notation, we just multiply N by zero-point-zero-one. Next Slide.

Slide 4

Percents, Decimals, and Fractions

For example, to convert a percent number to a fraction number, we write the number forty-two percent as forty-two over one hundred or forty-two one-hundredths, as shown here. To change a percent to a decimal number, we simply use the meaning of percent. Here is an example. Change thirty-five-point-two percent to a decimal. Drop the percent symbol and write thirty-five-point-two over one-hundred. Then divide. As shown here, the decimal is written as zero-point-three-five-two. Next slide.

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Slide 5

Percents, Decimals, and Fractions, continued

To change a decimal to a percent, we move the decimal point two places to the right and then add the percent symbol to the right of the number. Here is an example. Change zero-pointtwo-seven to a percent. As shown here, the decimal point is moved two places to the right and the percent sign is added. The result is twenty-seven percent. To change a percent to a fraction, drop the percent symbol and write the original number over one-hundred. Then reduce the fraction as necessary. Here is an example. Write 45 percent as a fraction. As shown here, the percent symbol is dropped and 45 is written over one-hundred. When we reduce to lowest terms, we are left with nine-twentieths.

Slide 6

Percents, Decimals, and Fractions, continued

Next slide. To change a fraction to a percent, we can change the fraction to a decimal and then change the decimal to a percent. Lets look at an example. Change three-eighths to a percent. The first step is to convert the fraction to a decimal by dividing. As shown here, 3 divided by 8 is zero-point-threeseven-five. Next, we write the decimal as a percent by moving the decimal point over two places to the right and adding the percent symbol. The result is thirty-seven-point-five percent. Next slide.

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Page 3 of 9 Slide 7 Basic Percent Problems There are three kinds of word problems that are associated with percents. Here is the first type. What number is 15 percent of 63? Using N as the unknown, we can translate the question into an equation. To solve the equation, it is necessary to change the percent either into a decimal or into a fraction. In the problem, the word IS indicates the equal symbol, The word OF means multiplication. The equation is written as follows: N equals zero-point-onefive times 63. When we solve the equation, we find that N equals ninepoint-four-five. In other words, 15 percent of 63 is ninepoint-four-five. Next slide. Lets look at the second type of problem. What percent of 42 is 21? In this case, we need to find the percent. The equation is written as: N times 42 equals 21. We solve for the variable by dividing both sides by 42. The result is zero-point-five, or 50 percent. In other words, 50 percent of 42 is 21. Next slide. Here is the final type of percent problem. 25 is 40 percent of what number? Following the procedure used in the previous problems, we write the equation as 25 equals zero-point-four times N. We solve for N by dividing each side by zero-point-four. N equals sixty-two-point-five. In other words, 25 is 40 percent of sixty-two-point-five. Next slide

Slide 8

Basic Percent Problems, continued

Slide 9

Basic Percent Problems, continued

WEEK 9: 08/20-26/2007 MAT100-006016*200705

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Page 4 of 9 Slide 10 General Percents are used in many situations in life. Many articles and Applications publications use percentages as a way of conveying of Percent information. It is important to know how to work with percents in order to make the information more meaningful. Lets look at an example. On a one-hundred-twenty question test, a student answered ninety-six questions correctly. What percent of the problems did the student answer correctly? This problem can be restated as: Ninety-six is what percent of one-hundred-twenty? We can now write the equation. Ninety-six equals N times one-hundred-twenty. When we divide both sides by one-hundred-twenty, we find that N equals zero-point-eight, or eighty percent. This means that the student answered eighty percent of the questions correctly and received an eighty percent on the test. Slide 11 Sales Tax and Commission Next slide. Sales tax is represented in terms of percent of the price of the item being purchased. Here is an example. Suppose the sales tax rate in Mississippi is six percent of the purchase price. If the price of a used refrigerator is fivehundred-fifty dollars, what is the total cost of the refrigerator? First, we need to calculate the total sales tax. We can translate the problem into an equation by saying What is six percent of five-hundred-fifty? First we convert six percent to zeropoint-zero-six. This allows us to write the equation as N equals zero-point-zero-six times five-hundred-fifty. Solving for N, we get thirty-three. This means that the sales tax equals thirty-three dollars. To find the total cost of the refrigerator, we need to add the sales tax amount to the purchase price. In this case, we add fivehundred-fifty to thirty-three. The total cost of the refrigerator is five-hundred-eighty-three dollars. Next slide.

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Page 5 of 9 Slide 12 Sales Tax and Commission , continued Many salespeople work on a commission basis. That is, their earnings are a percentage of the amount they sell. The commission rate is a percent, and the actual commission they receive is a dollar amount. Lets look at an example. A real estate agent gets 6 percent of the price of each house she sells. If she sells a house for eighty-nine-thousand-fivehundred dollars, how much money does she earn? We can restate the problem as What is 6 percent of eightynine-thousand-five-hundred dollars? The equation we write to solve this is N equals zero-pointzero-six times eighty-nine-thousand-five-hundred. Solving for N, we get five-thousand-three-hundred-seventy. This means that the salesperson earned five-thousand-threehundred-seventy dollars in commission by selling a house for eighty-nine-thousand-five-hundred dollars. Next slide. Slide 13 Percent Increase or Decrease and Discount Many times it is more effective to state increases or decreases in terms of percents, rather than the actual number, because with percent we are comparing everything to one-hundred. Here is an example. If a person earns twenty-two-thousand dollars a year and gets a 5 percent increase in salary, what is the new salary? First, we can find the amount of the salary increase by finding 5 percent of twenty-two-thousand. The amount of the increase is one-thousand-one-hundred dollars. The new salary is the old salary plus the raise. The new salary is twenty-three-thousand-one-hundred dollars. Next slide.

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Page 6 of 9 Slide 14 Percent Increase or Decrease and Discount, continued Lets look at an example that uses a percent decrease. Shoes that usually sell for twenty-five dollars are on sale for twenty-one dollars. What is the percent decrease in price? First, we find the dollar decrease in price by subtracting twenty-one from twenty-five. Since there is four dollar difference. The decrease is four dollars. To find the percent decrease, we can think of the problem as Four dollars is what percent of twenty-five dollars? We write the equation as Four equals N times twenty-five. When we divide both sides by twenty-five, we find that N equals zero-point-one-six. This means that there was a sixteen percent decrease in the sales price of the shoes. Next slide. Slide 15 Interest Interest is the amount of money paid for the use of money. If we put five-hundred dollars in the bank for one year at a six percent annual interest rate, we would earn thirty dollars of interest in that year. In this case, the five-hundred dollars we have invested is called the principal, the 6 percent is called the interest rate and the thirty dollars we earned is the interest. Lets look at another example. Suppose a farmer borrows eight-thousand dollars from his local bank at a twelve percent interest rate. How much does he pay back to the bank at the end of the year to pay off the loan? First, we calculate the interest by multiplying the interest rate by the principal amount. Eight-thousand times zero-pointone-two is nine-hundred-sixty dollars. At the end of the year, the farmer must pay back the original amount borrowed plus the interest that has accrued. We add the interest of nine-hundred-sixty dollars to the principal amount of eight-thousand dollars. The farmer must pay back a total of eight-thousand-nine-hundred-sixty dollars. Next slide.

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Page 7 of 9 Slide 16 Interest, continued There are many situations in which interest is figured on other than a yearly basis. For example, a short-term loan may be for only thirty or sixty days. There is a formula that can be used for this type of situation. The formula for simple interest is I equals P times R times T, where I is interest, P is principal, R is the interest rate, and T is time. Next slide.

Slide 17

Interest, continued

Lets look at an example of a simple interest problem. Suppose a company borrows eight-thousand dollars at ninepoint-seven-five percent for sixty days. How much interest must be paid at the end of the loan period? Using the information provided, we substitute the known values for P, R, and T. P equals eight-thousand dollars, R equals zero-point-zero-nine-seven-five, and T equals sixty over three-hundred-sixty-five, which reduces to twelve over seventy-three. As shown here, the company must pay interest of approximately one-hundred-twenty-eight dollars and twenty-two cents. Next slide.

Slide 18

Interest, continued

You may have heard of savings and loan companies that offer interest rates that are compounded quarterly. If the interest is compounded quarterly, then after every ninety days, the interest is added to the account. Compound interest is computed on not only the principal, but also on the interest already earned in previous compounding periods. Compound interest is used more often than simple interest in saving accounts. Here is an example of compound interest. If ten-thousand dollars is invested in a savings account that pays six percent compounded quarterly, how much is in the account at the end of the year? The first step is to calculate the interest paid for the first quarter. Using the formula for simple interest, we find that

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Page 8 of 9 one-hundred-fifty dollars is earned in the first quarter. Since the interest is compounded quarterly, the interest that is earned in the first quarter is added to the principal amount and the calculation for the second quarter is made using the new principal amount of ten-thousand-one-hundred-fifty dollars. In the third and fourth quarters, the process is repeated, where the interest earned is added to the principal and the interest is calculated using the new principal amounts. At the end of the year, the total amount of money in the account is ten-thousand-six-hundred-thirteen dollars and 63 cents. Next slide. Slide 19 Summary We have reached the end of this lesson. Lets take a look at what weve covered. Percent means per hundred. Writing a number as a percent is a way of comparing the number with one-hundred. To change a decimal to a percent, we move the decimal point two places to the right and add the percent symbol. To change a fraction to a percent, we can change the fraction to a decimal and then change the decimal to a percent. There are three kinds of word problems that are associated with percents. These problems involve solving for the percentage amount, the percent, and the full amount. Sales tax is represented in terms of percent of the price of the item being purchased. Many salespeople work on a commission basis. That is, their earnings are a percentage of the amount they sell. The commission rate is a percent, and the actual commission they receive is a dollar amount. Many times it is more effective to state increases or decreases in terms of percents, rather than the actual number, because with percent we are comparing everything to one-hundred. Interest is the amount of money paid for the use of money. The interest amount can be calculated using the formula for simple interest. Finally, we discussed compound interest. Compound interest is computed on not only the principal, but also on the WEEK 9: 08/20-26/2007 MAT100-006016*200705 CHAPTER 8 FUNDAMENTAL OF MATH 9/19/2012 T.C. SANDERS

Page 9 of 9 interest already earned in previous compounding periods.

WEEK 9: 08/20-26/2007 MAT100-006016*200705

CHAPTER 8 FUNDAMENTAL OF MATH

9/19/2012 T.C. SANDERS