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Percentages
Percentages
Percentages can be written as fractions or decimals. To write a percent as a fraction, put the
percent in the numerator and 100 in the denominator, and reduce it if needed. After all,
“percent” means per 100. To write a percent as a decimal, simply move the decimal two spots
to the left. Observe the examples below.
3% = 3/100 = .03
100% = 100/100 = 1
It is important in percentage problems to remember that the word “of” typically indicates
multiplication (not to be confused with “out of,” which typically indicates division).
1) Find 5% of 80.
.05 • 80 = 4
Any time a percentage problem refers to an unknown number, call that number “x” in your
equation. Remember that “is” indicates an equal sign.
15) A certain number is decreased by 20% and the result is 30. What was that number?
30 = .8x x = 30/.8 x = 37.5.
In this example and the example above (since they are different versions of the same problem),
it is important not to attempt to find the unknown number by adding 20% of 30 to 30. Doing so
would leave you with 36 rather than the correct answer of 37.5. Increasing 30 by 20% of 30
does not have the desired effect because you need to add 20% of the larger unknown number
(which you now know is 37.5) to 30, and 20% of the larger number is greater than 20% of 30.
It is crucial in multi-step percentage problems to do the multiple steps as separate steps
rather than attempting to combine them into one single step.
16) The price of a pair of skis is normally $800. These skis are discounted by 20% and a
customer has a coupon that offers 30% off the sale price. What does the customer pay for the
skis?
$800 • .8 • .7 = $448
Had you incorrectly combined these two discounts into one single discount of 50% instead of
applying them separately, you would have gotten $400, which is not the correct answer. The
reason you cannot combine the separate discounts into one discount is that the second
discount applies to an already discounted price, and 30% of an already discounted price is less
than 30% of the original price.
17) The price of a stock increases by 40% the first year and decreases by 20% the second year.
By what percent did the price of the stock increase over the two year period?
x • 1.4 • .8 = 1.12
1.12 represents an increase of 12% from the original (1), so the price of the stock increased by
12%