08 HBMT3303 T4

Topic  Percentages
4
LEARNING OUTCOMES
By the end of this topic, you should be able to:
1. Explain the relationship between the concept of fractions and
decimals to the concept of percentages;
2. Convert percentages to fractions and decimals, and vice versa;
3. Explain the method to find the percentage of a quantity; and
4. Solve problems involving profits, losses, interests, dividends,
commissions and discounts.
 INTRODUCTION
The study of percentages is closely related to fractions and decimals. In fact, they
are all just different methods of representing the same mathematical idea.
Therefore, the learning of percentages cannot be isolated from fractions and
decimals. It is easier to teach the concept of percentages by comparing it with
fractions and decimals. We shall explore their relationship in the next subtopic.
4.1 COMPARING FRACTIONS, DECIMALS AND

PERCENTAGES
Mathematics involves various relationships among its different concepts and
being able to make the connection between these concepts is integral to
developing mathematical understanding and proficiency. Thus, it is easier for
students to understand the concept of percentage if we relate it to what they have
learned in fractions and decimals. Let us look at the following instructional
activity (refer to Activity 4.1).
Copyright © Open University Malaysia (OUM)

142  TOPIC 4 PERCENTAGES
Teaching Sample Activity 4.1: To explore the relationship between fractions,

decimals and percentages.
1. Students are given a piece of paper with two diagrams as shown in

Figures 4.1:
Diagram A
Diagram B
Figure 4.1: Two diagrams in a piece of paper
2. Begin the lesson by guiding students to provide as much information as

possible on the two diagrams.

TOPIC 4 PERCENTAGES  143
3. Some possible responses from the students are:

(a) The diagrams show two squares of the same size;
(b) The shaded regions of the two squares have the same area;
(c) The first square is divided into five equal parts, of which two parts
are shaded;
(d) The fraction represented by the shaded region in the first square is
2
;
5
(e) The second square is divided into 100 equal parts, of which 40 parts
are shaded;
(f) The fraction represented by the shaded region in the second square is
40
;
100
2 40
(g) The fraction is equivalent to the fraction ;
5 100
2
(h) The fraction can be converted into decimal form using division
5
and its value is equal to 0.4; and
40
(i) The fraction can be converted into decimal form using division
100
and its value is equal to 0.4.
4. Introduce the meaning of percent as „out of one hundred‰ or/and as „per

one hundred‰. The term percent comes from the Latin word per centum
which means per hundred.
5. Introduce the percent symbol, %, and guide students to understand the

percentage concept by providing some examples such as:
(a) 10% means 10 out of one hundred;
(b) 35% means 35 out of one hundred; and
(c) 40% means 40 out of one hundred.
6. By referring to Figure 4.1(b), guide students to use percentages to represent

the shaded region. Hence, since 40 out of 100 small squares are shaded, we
can say that 40% of the big square is shaded.

7. By referring to Figure 4.1(b), guide students to use percentages to represent

the shaded region. Hence, since 40 out of 100 small squares are shaded, we
can say that 40% of the big square is shaded.
2 40
8. Emphasise to students that the numbers , , 0.4 and 40% all refer to the
5 100
same value indicated by the shaded region.
9. Using the same set of teaching aids but by varying the size of the shaded
regions, you will be able to guide students to build a table listing various
fractions and their equivalence in decimals as well as in the percentage
forms, as shown in Table 4.1.
Table 4.1: Fractions and their Equivalence in Decimals and Percentage
No Fraction Decimal Percentage

1
1 0.01 1%
100
10
2 0.1 10%
100
25
3 0.25 25%
100
1
4 0.25 25%
4
1
5 0.5 50%
2
3
6 0.75 75%
4
4
7 0.8 80%
5
2
8 0.667 66.7%
3
9 1 1.00 100%
100
Students should be able to see that 1 = = 100%. You can then ask them the
100
meaning of 120% and so on.
Extension: Provide students with 10 × 10 grid papers and instruct them to colour
the squares (a) 25% red; (c) 15% green; (c) 33% blue; and (e) 20% yellow as
creatively as they can.

4.1.1 Convert Fractions to Percentages

We have mentioned earlier that percentage means „how many out of hundred‰.
For instance, 70% means 70 out of 100. Based on this concept, we can convert a
fraction to its equivalence in the form of percentage.
For example, in Figure 4.2, the shaded region obviously is one part out of four
1
equal parts. Therefore, it can be represented by the fraction . However, if we
4
count in terms of the number of smaller squares, then the shaded region covers
25 squares out of a total of hundred squares (see Figure 4.2). Hence, the region
25
can also be represented by the fraction . This is also an example of 25 out of
100
hundred (as 25 squares are shaded out of the total 100 squares). Therefore, the
value can be written in the percentage form as 25%.
Figure 4.2: Twenty-five shaded squares
1
By now, are you able to deduce a method to convert the fraction to
4
percentage?

It is very simple. Try the following methods:
(a) Method 1
Procedure Notes
1
(a) Change the fraction to an equivalent 1 1 × 25 25
4 = =
4 4 × 25 100
fraction with the denominator of 100.
(b) Take the value of the numerator of the
1
equivalent fraction as the value in the Therefore, = 25%
percentage form. 4
(b) Method 2
Procedure Notes
1
(a) Multiply the fraction by 100. × 100 = 25
4
1
(b) Write the value in the percentage form. Therefore, = 25%
4
It needs to be noted that in some cases, the fraction to be converted to percentage

when multiplied by 100 may not yield a whole number but instead another
fraction. If this is the case, we then have to divide the numerator of that fraction
by its denominator to get the answer. To illustrate this, let us try to convert the
4
fraction to percentage.
7
Procedure Notes
4 400
(a) Multiply the fraction by 100. × 100 =
7 7
(b) Divide the numerator with the denominator. 57.1
7 400
35
50
49
10
7
3
(c) The answer is approximately 57.1 (to one 4
Therefore, = 57.1%
decimal place). 7

4.1.2 Convert Percentages to Fractions

Converting percentages to fractions is simply the reverse process of converting
fractions to percentages. Earlier, we showed you that to convert a fraction to a
percentage; you have to multiply the fraction by 100. Therefore, we can now
deduce that if we want to convert a number in percentage form to its equivalence
in the form of a fraction, then we should divide the number by 100, or multiply it
1
by . Then, you simplify the fraction.
100
Let us look at some examples in Table 4.2.
Table 4.2: Examples of Percentages to Fractions Conversion
Number in Percentage
Steps to Convert Number in Fractions
Form
1 35 7 7
35% 35 × = =
100 100 20 20
1 60 3 3
60% 60 × = =
100 100 5 5
1 75 3 3
75% 75 × = =
100 100 4 4
4.1.3 Convert Decimals to Percentages

To convert a decimal value to its equivalent in percentage form, simply multiply
the decimal by 100.
Some examples are provided in Table 4.3.
Table 4.3: Examples of Decimals to Percentages Conversion
Decimals Convert to Percentages

0.5 0.5 = 0.5 × 100% = 50%
0.25 0.25 = 0.25 × 100% = 25%
0.03 0.03 = 0.03 × 100% = 3%
By studying the above examples, you may be able to discover that an easier
method of converting a decimal to the percentage form is by moving its decimal
point two places to the right.

4.1.4 Convert Percentages to Decimals

The conversion from percentages to decimals is the opposite of the conversion
from decimals to percentages; which means that any number in percentage can
be changed to its decimal form by dividing the number by 100 or by multiplying
1
it with . However of course in this case; you should not leave your answer in
100
the form of a fraction. Instead, use long division to find the decimal. Some
examples are given in Table 4.4.
Table 4.4: Examples of Percentages to Decimals Conversion

(a)
Percentage Convert to Decimal

3
3% = 0.03
100
75
75% = 0.75
100
92
92% = 0.92
100
(b)
Percentage Convert to Decimal
3% 0.03
75% 0.75
92% 0.92

After your students understand and know how to convert between fractions,
decimals and percentages, you can reinforce their understanding through
interesting and motivating activities. Teaching Sample Activity 4.2 shows an
example of a game that your students can play.
Teaching Sample Activity 4.2: Equivalent dominoes ă Reinforcing the

relationship between fractions, decimals and percentages.
Objective of the Game

Match the equivalent values on the playing cards, but not like-for-like. For
example, a player could match 0.75 to 75%, but not 75% to 75%.
Players
Four to six players
Materials
Playing cards numbered with fractions, decimals or percentages. Make three
copies of the square template (producing 36 squares) as shown in Figure 4.3
(you may make more or adjust to suit your players).
Figure 4.3: Square template

Procedure
1. Deal out an equal number of cards to each player, leaving a small pick-up
pile.
2. The first player lays down his/her first card. The next player matches
an equivalent card to the first player, by playing off either of the three
numbered sides showing, but not off the green side (see Figure 4.4).
Figure 4.4: Three numbered sides
3. The next player can play off any number available. Either straight on, or
at a right angle to the card. A play must always occur off one or other end
of the developing line, just like dominoes. Figure 4.5 shows the options
for play off a typical line of Equivalent Squares.
Figure 4.5: Typical line of equivalent squares
4. If a player has no equivalent card to play, then he/she takes a card from
the pick-up pile and the turn goes to the next player.
5. The winner of the game is the player who uses all his/her squares first.
Source: http://www.teachingideas.co.uk

4.2 TO FIND THE PERCENTAGE OF A

QUANTITY
To find a particular percentage of a given value, we will need to multiply the
corresponding fraction of that given percentage by the given value.
For example, to find 30% of 50, we multiply the fraction corresponding to 30%,
30
which is , by 50.
100
30
Hence, we have 30% of 50 = × 50 = 15
100
More examples are shown in Table 4.5.
Table 4.5: Examples of Percentage of a Quantity
Question Solution
60
Calculate 60% of 320. × 320 = 192
100
70 315
Calculate 45% of 70. × 45 = = 31.5
100 10
25 900
Calculate 25% of 36. × 36 = =9
100 100
When given the percentage of a quantity, we can also find the quantity involved.
For example: Given 8 is 40% of a number, find the number.
40
40% of a number, say a, is 8. Hence, × a = 8. We can then use cross-multiply to
100
get the answer. When using cross-multiply, it is good to times both sides with the
reciprocal fraction as shown below to get a more accurate answer.
5
100 40 100
× ×a = 8×
40 100 40 2
a = 20

4.3 PROBLEM SOLVING: APPLICATIONS OF

PERCENTAGES
Percentages have wide applications in real life, especially in the field of business.
Areas involving calculation of percentages include calculation of profits and
losses, dividends, interest, commissions, discounts and so on. It may be a good
idea to teach these form of calculations based on problem situations that students
are familiar with. You may even use role play activities (such as having students
act as sellers and buyers) to enhance their understanding and also to motivate
them in learning the topic.
4.3.1 Percentage of Increase or Decrease

The calculation of percentage increase or percentage decrease is based on the
following principles.
When there is an increase from the original value, the calculation of percentage
increase, usually written as % increase, is carried out in two steps:
Step 1: Increase in value = New value ă Original value
Increase in value
Step 2: Percentage increase = × 100%
Original value
Example 4.1
Last year, our school had 800 students. This year, the number has increased to
1,000. What is the percentage increase of the number of students?
Solution:
Increase = 1,000 ă 800 = 200
Increase in value
Percentage increase = × 100%
Original value
1
200
= × 100%
4 800
= 25%

Similarly, when there is a decrease from the original value, the calculation is as
follows:
Step 1: Decrease in value = Original value ă New value
Decrease in value
Step 2: Percentage decrease = × 100%
Original value
Example 4.2
Azizah bought 20 fishes for the pond in her garden. A week later, three fishes
died. What is the percentage decrease in the number of fishes?
Solution:
Decrease = Original value ă New value = 20 ă 17 = 3
Decrease in value
Percentage decrease = × 100%
Original value
3
= × 100% = 15%
20
Note: If students understand the principles in the calculation of percentage

increase and percentage decrease well, then it will be easier for you to explain the
applications of percentages in everyday calculations.
4.3.2 Profit and Loss

Before teaching students methods to calculate profit and loss, we need to ensure
that they first understand the meaning of profit and loss. You will need to
provide practical examples (see Activity 4.3) to show the following calculation:
Calculation of Profit
Profit = Selling price ă Cost price
Profit
Percentage profit = × 100%
Cost price

Calculation of Loss
Loss = Cost price ă Selling price
Loss
Percentage loss = × 100%
Cost price
Teaching Sample Activity 4.3: The calculation of profit and loss.
Learning will become more meaningful to students when learning activities

initiated by the teacher are closely associated with their real life experiences.
Therefore, to teach students the calculation of profits and losses, it may be a
good idea to involve them in some kind of buying-selling activities, with some
students playing the role of sellers and others the role of buyers. We will
demonstrate this in the following activity.
1. Instruct students to bring from home some household items such as

toothbrushes, T-shirts, cups, rulers and pencils.
2. Guide students in setting up a role-play/simulation activity, modelling a

store in the market. Some students should be assigned to act as sellers
and others as buyers.
3. Guide students to prepare price tags for the items being displayed.
4. Using an inquiry approach, discuss with students the concepts of profits

and losses. Introduce them to examples of the following terms: cost price,
selling price and profits.
5. With appropriate examples, show students the calculation of profit as

well as the calculation of percentage profit.
6. Explain to students that under certain situations, goods may sometimes

be sold at a loss, which is when the selling price is lower than the cost
price. Guide them in the calculation of loss and percentage loss.
7. Guide students to prepare a table as shown in Table 4.6, with the selling
price filled (as displayed on the respective price tags). Discuss with them
to determine the cost price of each item, with some items recording a
higher cost price than its selling price.

Table 4.6: ProductsÊ Price
Item Cost Selling

Percentage
code Item Name Price Price Profit Loss
Profit/Loss
(RM) (RM)
001 Crocodile T-shirt 8.00 10.00
002 Colgate toothbrush 1.50 1.80
003 Harry Potter book 102.00 66.30
004 Pilot fountain pen 28.00 30.80
005 Casio calculator 52.00 44.20
8. Instruct students to carry out the selling and buying activity, and then fill
in the columns of the table accordingly.
4.3.3 Discounts
Offering discounts for items to be sold is a common strategy used in business, to
promote sales. Discounts are often offered in the form of percentages.
Discount = Initial price ă New price
Discount
Percentage discount = × 100%
Initial price
Note that the original price is also referred to as the initial price and the new
price as the discounted price.

Example 4.3
If an item has an initial price of RM30.00, and you want to sell it at RM27.00,
what is the percentage of discount for the item and its new price?
The amount of discount = Initial price − New price

= RM30.00 − RM27.00
= RM3.00
Discount
Percentage discount = × 100%
Initial price
3
= × 100%
30
= 10%
Conversely, if an item has an initial price of RM30.00, and it is to be sold at a 10%

discount, then the calculation of the discount and the new selling price is as
follows:
Discount = 10% of initial price

10
= × 30
100
=3
New price = Initial price − Discount

= 30 − 3
= 27
Therefore, the new selling price after discount is RM27.00.

We may also calculate the new selling price in the following way:
Since there is a 10% discount, the new selling price should be (100 ă 10)% or
90% of the initial selling price.
Hence, the new selling price = 90% of the initial price

90
= × 30
100
= 27
Therefore, the new selling price is RM27.00.
SELF-CHECK 4.1
Design a learning activity similar to Teaching Sample Activity 4.3 to
guide students in understanding calculations involving discounts.
4.3.4 Interest, Dividend and Commission

It is useful to expose students to basic financial knowledge and skills at a young
age. Some of the knowledge related to investment and business include the
calculation of interest, dividend and commission.
(a) Simple Interest:

When we deposit a certain amount of money in a bank for certain duration,
the bank will give us extra money which is known as interest. Conversely,
if we borrow money from the bank, we need to pay interest for the loan.
Brochures and flyers that banks use to advertise their saving, fixed deposit
or lending interest rates are good teaching aids that provide real-life
contexts of percentage applications. You should collect such information to
provide authentic learning experiences to your students.
Interest is normally given in the form of percentage (%) per annum.

Simple interest = P ×ïR ×T
Whereby P = Principal = Amount of investment or saving;
R = Simple interest rate; and
T = Time or duration = Number of years.
To clarify this, let us look at the following examples:
Example 4.4
Dorothy deposits an amount of RM2,000.00 in a bank for two years. If the
bank offers an interest of 4% per annum, how much will Dorothy get at the
end of the two years?
Solution:
Understand the problem: Amount of saving = RM2,000.00
Interest rate = 4%
Time/period = Two years
To find the total amount of interest after

two years.
Devise a strategy: Calculate the simple interest based on the

information. Then add this to the original
saving.
Carry out the strategy: Simple interest = P × R ×T

4
= RM2, 000 × ×2
100
= RM160.00
Total amount = RM ( 2, 000 + 160 )

= RM2,160

Check your answer: Interest for one year = RM160 ÷ 2

= RM80.00
Interest
Percentage interest = × 100%
Principal
80
= × 100%
2000
= 4%
Therefore, Dorothy will receive a total of RM2,160.00 at the end of the two
years.
(b) Dividend:
When a company makes profit, it may give part of the profit to its
shareholders in the form of dividend. Dividend is normally calculated as a
percentage of the value of the shares the shareholder owns, as shown in the
following example.
Example 4.5
Norsiah owns RM10,000.00 worth of shares at Company XYZ. The
company announces a dividend of 6%. How much dividend will Norsiah
get?
Solution:
Understand the problem: Value of shares = RM10,000.00
Share dividend = 6%
Find the value of the dividend.
Devise a strategy: Calculate the dividend by multiplication.
Carry out the strategy: Dividend = 6% of RM10,000

6
= × 10, 000
100
= 600

Check your answer: Percentage of dividend
Dividend
= × 100%
Total share value
600
= × 100%
10, 000
= 6%
Therefore, Norsiah will get a total dividend of RM600.00.
(c) Commission:
A commission is a payment or reward given to an agent or a middleman
who has granted certain service or a certain transaction. Commission is
normally stated as a percentage of the value of the transaction.
Example 4.6
Mr Rajah sold a house at RM185,000.00 with the help of an agent. He has
agreed to pay the agent a 2% commission. How much will the agent get?
Solution:
Understand the problem: Value of sales = RM185,000.00
Commission = 2%
Find out how much commission the agent

will receive.
Devise a strategy: Calculate the commission by multiplication.
Carry out the strategy: Commission = 2% of the value of the sale

2
= × 185, 000
100
= 3,700
3,700
Check your answer: Percentage of commission = × 100%
185, 000
= 2%
Therefore, the agent will get a commission of RM3,700.00.

In order to make sure your students understand the use of percentages, you need
to give them a lot of reinforcement exercises under various situations, based
on everyday use as illustrated by the examples. Whenever possible, provide
authentic learning examples to your students.
• Percentages, fractions and decimals are related concepts.
• The relationships between percentage, fractions and decimals are used to

convert one form to another and vice versa.
• Percentages have wide applications in real life including calculation of profits

and losses, dividends, interest, commissions, discounts and so on.
• Using real-life examples and activities are effective ways to enhance

understanding of the applications of percentages.
Commission Dividend
Compare Interest
Convert Percentages
Discounts Profit and loss

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Topic  Percentages

4.1 COMPARING FRACTIONS, DECIMALS AND

Copyright © Open University Malaysia (OUM)

Teaching Sample Activity 4.1: To explore the relationship between fractions,

1. Students are given a piece of paper with two diagrams as shown in

Figure 4.1: Two diagrams in a piece of paper

2. Begin the lesson by guiding students to provide as much information as

Copyright © Open University Malaysia (OUM)

3. Some possible responses from the students are:

4. Introduce the meaning of percent as „out of one hundred‰ or/and as „per

5. Introduce the percent symbol, %, and guide students to understand the

(a) 10% means 10 out of one hundred;

(b) 35% means 35 out of one hundred; and

(c) 40% means 40 out of one hundred.

6. By referring to Figure 4.1(b), guide students to use percentages to represent

Copyright © Open University Malaysia (OUM)

7. By referring to Figure 4.1(b), guide students to use percentages to represent

No Fraction Decimal Percentage

Copyright © Open University Malaysia (OUM)

4.1.1 Convert Fractions to Percentages

Figure 4.2: Twenty-five shaded squares

Copyright © Open University Malaysia (OUM)

It is very simple. Try the following methods:

It needs to be noted that in some cases, the fraction to be converted to percentage

Copyright © Open University Malaysia (OUM)

4.1.2 Convert Percentages to Fractions

Let us look at some examples in Table 4.2.

Table 4.2: Examples of Percentages to Fractions Conversion

4.1.3 Convert Decimals to Percentages

Some examples are provided in Table 4.3.

Table 4.3: Examples of Decimals to Percentages Conversion

Decimals Convert to Percentages

Copyright © Open University Malaysia (OUM)

4.1.4 Convert Percentages to Decimals

Table 4.4: Examples of Percentages to Decimals Conversion

Percentage Convert to Decimal

Percentage Convert to Decimal

Copyright © Open University Malaysia (OUM)

Teaching Sample Activity 4.2: Equivalent dominoes ă Reinforcing the

Objective of the Game

Figure 4.3: Square template

Copyright © Open University Malaysia (OUM)

Figure 4.4: Three numbered sides

Figure 4.5: Typical line of equivalent squares

Copyright © Open University Malaysia (OUM)

4.2 TO FIND THE PERCENTAGE OF A

More examples are shown in Table 4.5.

Table 4.5: Examples of Percentage of a Quantity

For example: Given 8 is 40% of a number, find the number.

Copyright © Open University Malaysia (OUM)

4.3 PROBLEM SOLVING: APPLICATIONS OF

4.3.1 Percentage of Increase or Decrease

Step 1: Increase in value = New value ă Original value

Copyright © Open University Malaysia (OUM)

Step 1: Decrease in value = Original value ă New value

Decrease = Original value ă New value = 20 ă 17 = 3

Note: If students understand the principles in the calculation of percentage

4.3.2 Profit and Loss

Profit = Selling price ă Cost price

Copyright © Open University Malaysia (OUM)

Loss = Cost price ă Selling price

Teaching Sample Activity 4.3: The calculation of profit and loss.

Learning will become more meaningful to students when learning activities

1. Instruct students to bring from home some household items such as