1. Business Math, Chapter 1. Percent
1. Business Math, Chapter 1. Percent
Percent
LEARNING OBJECTIVEES
Introduction to Percentage
A percent means a part of 100. For Example, if you get 95% on a test, your mark was 95 out
of 100.
With fractions and decimals, we compare only like quantities, that is, fractions with common
denominators and decimals with the same number of decimal places. We can standardize our
representation of quantities so that they can be more easily compared. We standardize by
expressing quantities in relation to a standard unit of 100. This relationship, called a percent,
is used to solve many different types of business problems.
The word percent means hundredths or out of 100 or per 100 or over 100 (in a fraction).
That is, 25 percent means 25 hundredths, or 25 out of 100, or 25 per 100, or 25 over 100.
25
We can write 25 hundredths as 0.25 or 100.
The symbol for percent is %. You can write 25 percent using the percent symbol: 25%; using
25
fractional notation: 100 or using decimal notation: 0.25.
25
25% = 25 percent = 25 hundredths = 100 = 0.25
Lecturer: 2
Eng. Hanifullah Hakimi
Business Math (Chapter 1 Percent)
Rana university, BBA department
HOW TO Change a Percent to a Decimal?
1. If the percent has a fractional part, convert the fraction to its decimal equivalent.
3. Move the decimal point two places to the left (insert zeros if needed).
35
Example 1: 35% = 100 = 0.35
70
Example 2: 70% = 100 = 0.70 = 0.7
12.4
Example 3: 12.4% = = 0.124
100
3.64
Example 4: 3.64% = = 0.0364
100
1
Example 5: 1% = 100 = 0.01
1 0.2
Example 6: % = 0.2% = 100 = 0.002
5
3 11 2.75
Example 7: 2 4 % = % = 2.75% = = 0.0275
4 100
1 7 3.5
Example 8: 3 2 % = 2 % = 3.5% = 100 = 0.035
2 0.666
Example 9: 3 % ≈ 0.666% ≈ ≈ 0.00666
100
1 0.083
Example 10: 12 % ≈ 0.083% ≈ ≈ 0.00083
100
100
Example 11: 100% = 100 = 1
150
Example 12: 150% = 100 = 1.5
0.03
Example 13: 0.03% = = 0.0003
100
2.54
Example 14: 2.54% = = 0.0254
100
12.091
Example 15: 12.091% = = 0.12091
100
Lecturer: 3
Eng. Hanifullah Hakimi
Business Math (Chapter 1 Percent)
Rana university, BBA department
2. Change or convert fraction, decimal and whole number to percent.
When we multiply a number by 1, the product has the same value as the original number.
1 1
100% = 1, = ∙ 100% = 50%
2 2
Example 1: 0.3 = 0.3 ∙ 100% = 30% (𝑀𝑜𝑣𝑒 𝑡ℎ 𝑑𝑒𝑐𝑖𝑚𝑎𝑙 𝑝𝑜𝑖𝑛𝑡 𝑡𝑤𝑜 𝑝𝑙𝑎𝑐𝑒𝑠 𝑡𝑜 𝑡ℎ𝑒 𝑟𝑖𝑔ℎ𝑡).
1
Example 7: 4 = 0.25 = 0.25 ∙ 100% = 25%
2
Example 8: 5 = 0.4 = 0.4 ∙ 100% = 40%
1
Example 9: 2 = 0.5 = 0.5 ∙ 100% = 50%
2
Example 10: 3 = 0.666 = 0.666 ∙ 100% = 66.6%
Lecturer: 4
Eng. Hanifullah Hakimi
Business Math (Chapter 1 Percent)
Rana university, BBA department
1-1 SECTION EXERCISES
Write the percent as a decimal. Round to the nearest thousandth if the division does not
terminate.
1 1
4. 150% 5. 5 % 6. 15 3 %
3
7. 100% 8. 1% 9. 2 4 %
Lecturer: 5
Eng. Hanifullah Hakimi
Business Math (Chapter 1 Percent)
Rana university, BBA department
1-2 SOLVING PERCENTAGE PROBLEMS
LEARNING OUTCOMES:
1. Identify the rate, base, and part in percent problems.
2. Use the percentage formula to find the unknown value when two values are known.
Example: 50% of 120 is 60. (Here 120 is Base, 60 is Portion and Rate is 60% = 0.6)
2. Identify the base. Base is the total amount, original amount, or entire amount. The base often
follows the preposition of.
3. Identify the portion. Portion can refer to the part, partial amount, amount of increase or
decrease, or amount of change. It is a portion of the base. The portion often follows a form of
the verb is.
Lecturer: 6
Eng. Hanifullah Hakimi
Business Math (Chapter 1 Percent)
Rana university, BBA department
Percentage formula to find the unknown values when two values are known.
50% of 120 is 60. (Here 120 is Base, 60 is Part and 50% = 0.5 is Rate)
Examples
Example 1: Find 34% of 450.
Solution:
𝐵 = 450
𝑅 = 34%} 𝑃 = 𝑅 × 𝐵 = 0.34 × 450 = 153
𝑅 = 0.34
𝑃 =?
Lecturer: 7
Eng. Hanifullah Hakimi
Business Math (Chapter 1 Percent)
Rana university, BBA department
Example 6: 45% of a number is 2,925 what is the number?
Solution:
𝐵 =?
𝑅 = 45% 𝑃 2925
} 𝑃 = 𝑅 × 𝐵 => 𝐵 = = = 6,500
𝑅 = 0.45 𝑅 0.45
𝑃 = 2,925
Example 7: If 4% of the amount is 80, what is the amount?
Solution:
𝐵 =?
𝑅 = 4% } 𝑃 = 𝑅 × 𝐵 => 𝐵 = 𝑃 = 80 = 2,000
𝑅 = 0.04 𝑅 0.04
𝑃 = 80
Example 8: If 25% of the amount is 3,312.5 What is the amount?
Solution:
𝐵 =?
𝑅 = 25% 𝑃 3312.5
} 𝑃 = 𝑅 × 𝐵 => 𝐵 = = = 13,250
𝑅 = 0.25 𝑅 0.25
𝑃 = 3,312.5
Example 9: Mr. Arshad gets 20% profit from his investment. His profit is AFN 6,580. Find
his amount of investment.
Solution:
𝐵 =?
𝑅 = 20% 𝑃 6580
} 𝑃 = 𝑅 × 𝐵 => 𝐵 = = = 32,900
𝑅 = 0.2 𝑅 0.2
𝑃 = 6,580
Example 10: Mr. Khalid gets 15.2% profit from his investment. His profit is AFN 380. Find
his amount investment?
Solution:
𝐵 =?
𝑅 = 15.2% } 𝑃 = 𝑅 × 𝐵 => 𝐵 = 𝑃 = 380 = 2,500
𝑅 = 0.152 𝑅 0.152
𝑃 = 380
Example 11: Wealth of person is AFN 350,000. Rate of zakat is 2.5%.what will be the amount
of zakat that he is going to pay?
Solution:
𝐵 = 350,000
𝑅 = 2.5% } 𝑃 = 𝑅 × 𝐵 = 0.025 × 35,0000 = 8,750
𝑅 = 0.025
𝑃 =?
Example 12: Total increase in your salary is AFN 1,625. If your salary was AFN 65,000. Find
the percentage increase.
Solution:
𝑅 =? 𝑃 1,625
𝐵 = 48,000} 𝑃 = 𝑅 × 𝐵 => 𝑅 = = = 0.025 = 0.025 × 100% = 2.5%
𝑃 = 1,200 𝐵 65,000
Lecturer: 8
Eng. Hanifullah Hakimi
Business Math (Chapter 1 Percent)
Rana university, BBA department
1-2 SECTION EXERCISES
SKILL BUILDERS
Use the appropriate form of the percentage formula. Round division to the nearest hundredth
if necessary.
7. Find P if 𝑅 = 25% and 𝐵 = 300. 8. Find 40% of 160.
1
9. What number is 33 3 % of 150? 10. What number is 154% of 30?
2
11. Find B if 𝑃 = 36 and 𝑅 = 66 3 % 12. Find R if and 𝑃 = 70 and 𝐵 = 280
15. 30% of what number is 21? 16. 17.5% of what number is 18?
(Round to hundredths.)
23. 0.28% of what number is 12? 24. 1.5% of what number is 20?
(Round to the nearest hundredth.) (Round to the nearest hundredth.)
Lecturer: 9
Eng. Hanifullah Hakimi
Business Math (Chapter 1 Percent)
Rana university, BBA department
APPLICATIONS
25. At the Evans Formal Wear department store, all suits are reduced 20% from the retail price.
If Charles Stewart purchased a suit that originally retailed for $258.30, how much did he save?
26. Joe Passarelli earns $8.67 per hour working for Dracken International. If Joe earns a merit
raise of 12%, how much is his raise?
27. An ice cream truck began its daily route with 95 gallons of ice cream. The truck driver sold
78% of the ice cream. How many whole gallons of ice cream were sold?
28. Stacy Bauer sold 80% of the tie-dyed T-shirts she took to the Green Valley Music Festival.
If she sold 42 shirts, how many shirts did she take?
29. A stockholder sold her shares and made a profit of $1,466. If this is a profit of 23%, how
much were the shares worth when she originally purchased them?
30. The Drammelonnie Department Store sold 30% of its shirts in stock. If the department
store sold 267 shirts, how many shirts did the store have in stock?
31. Ali gave correct answers to 23 of the 25 questions on the driving test. What percent of the
questions did he get correct?
32. A soccer stadium in Manchester, England, has a capacity of 78,753 seats. If 67,388 seats
were filled, what percent of the stadium seats were vacant? Round to the nearest hundredth of
a percent.
33. Holly Hobbs purchased a magazine at the Atlanta airport for $2.99. The tax on the
purchase was $0.18. What is the tax rate at the Atlanta airport? Round to the nearest percent.
34. A receipt from Wal-Mart in Memphis showed $4.69 tax on a subtotal of $53.63. What is
the tax rate? Round to the nearest hundredth percent.
Lecturer: 10
Eng. Hanifullah Hakimi
Business Math (Chapter 1 Percent)
Rana university, BBA department
1-3 INCREASES AND DECREASES
LEARNING OUTCOMES:
1. Find the amount of increase or decrease in percent problems.
2. Find the new amount directly in percent problems.
3. Find the rate in increase or decrease problems.
In many business applications an original amount is increased or decreased to give a new amount.
Some examples of increases are the sales tax on a purchase, the raise in a salary, and the markup
on a wholesale price. Some examples of decreases are the deductions on your paycheck and
the markdown or the discount on an item for sale.
Example 1: Ahmad’s salary increased from AFN 25,000 to AFN 31,400. What is the amount
of increase?
Solution:
Beginning amount = 25,000 Increase = new amount − beginning amount
New amount = 31,400 } Increase = 31,400 − 25,000 = 6,400
Increase =? Ahmad’s salary increase was AFN 6,400
Example 2: Hakimi’s salary decreased from AFN 32,600 to AFN 14,900. What is the
amount of decrease?
Solution:
Beginning amount = 32,600 Decrease = beginning amount − new amount
New amount = 14,900 } Decrease = 32,600 − 14900
Decrease =? Hakimi’s salary decrease was 6,400
Lecturer: 11
Eng. Hanifullah Hakimi
Business Math (Chapter 1 Percent)
Rana university, BBA department
HOW TO Find the amount of change (increase or decrease) from a
percent of change?
1. Identify the original or beginning amount and the percent or rate of change.
2. Multiply the decimal or fractional equivalent of the rate of change times the original or
beginning amount.
Example 3: Your company has announced that you will receive a 4% raise. If your current
salary is AFN 42,500, how much will your raise be? And find your new salary.
Solution:
Example 4: Mursal weighed 230 pounds before experiencing a 12% weight loss. How many
pounds does she now weight?
Solution:
And her current weighed is equal to: 230 − 27.6 = 202.4 𝑃𝑜𝑛𝑑
Lecturer: 12
Eng. Hanifullah Hakimi
Business Math (Chapter 1 Percent)
Rana university, BBA department
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. We can find the new amount directly by adding or subtracting percents first.
The original or beginning amount is always considered to be our base and is represented by
100%.
Example 5: Ahmad salary is AFN 19,000. Increase is 7%. What will be new salary after
increase?
Solution:
Rate of new amount = 100% + rate of increase
= 100% + 7% = 107%
New amount = rate of new amount ∙ original amount
= 107% ∙ 19,000 = 0.107 ∙ 19,000
= 𝐴𝐹𝑁 20330
Example 7: A pair of jeans that originally cost $50 now is advertised as 70% off. What is the
sale price of the jeans?
Solution:
Rate of new amount = 100% − rate of decrease
= 100% − 70% = 30%
New amount = rate of new amount ∙ original amount
= 30% ∙ 50 = 0.3 ∙ 50
= $15
Lecturer: 13
Eng. Hanifullah Hakimi
Business Math (Chapter 1 Percent)
Rana university, BBA department
3. Find the rate in increase or decrease problems.
Many kinds of increase or decrease problems involve finding either the rate or the base.
The rate is the percent of change or the percent of increase or decrease. The base is still the
original amount.
Example 8: 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?
Solution:
Original amount = 1,525 amount of increase = new amount − original amount
new amount = 1,708 = 1,708 − 1,525 = 183
percent of increase in profit =? amount of change 183
percent of increse = = = 0.12
original amount 1,525
} percent of increse = 0.12 ∙ 100% = 12%
The percent of increase in profit is 𝟏𝟐%.
Example 9: Safiullah reduced his college spending from AFN 9500 in the fall semester to
AFN 8000 in the spring semester. What percent was the decrease?
Solution:
Fall semester spending = 9500 amount of decrease = original amount − new amount
Spring semester spending = 8000 = 9500 − 8000 = 1500
percent of increase in profit =? amount of change 1500
percent of increse = = = 0.15789
original amount 9500
} percent of increse = 0.15789 ∙ 100% = 15.789% = 16%
Lecturer: 14
Eng. Hanifullah Hakimi
Business Math (Chapter 1 Percent)
Rana university, BBA department
1-3 SECTION EXERCISES
SKILL BUILDERS
1. A number increased from 5,286 to 7,595. Find the amount of increase.
APPLICATIONS
11. The cost of a pound of nails increased from $2.36 to $2.53. What is the percent of increase
to the nearest whole-number percent?
12. Wrigley announced the first increase in 16 years in the price of a five-stick pack of gum.
The price was raised by 5 cents to 30 cents. Find the percent of increase. Round to the nearest
percent.
13. Bret Davis is getting a 4.5% raise. His current salary is $38,950. How much will his raise be?
14. Kewanna Johns plans to lose 12% of her weight in the next 12 weeks. She currently weighs
218 pounds. How much does she expect to lose?
15. DeMarco Jones makes $13.95 per hour but is getting a 5.5% increase. What is his new
wage per hour to the nearest cent?
16. Carol Wynne bought a silver tray that originally cost $195 and was advertised at 65% off.
What was the sale price of the tray?
17. A laptop computer that was originally priced at $2,400 now sells for $2,700. What is the
percent of increase?
18. Federated Department Stores dropped the price of a winter coat by 15% to $149. What
was the original price to the nearest cent?
Lecturer: 15
Eng. Hanifullah Hakimi
Business Math (Chapter 1 Percent)
Rana university, BBA department
Lecturer: 16
Eng. Hanifullah Hakimi
Business Math (Chapter 1 Percent)
Rana university, BBA department
Lecturer: 17
Eng. Hanifullah Hakimi
Business Math (Chapter 1 Percent)
Rana university, BBA department
Lecturer: 18
Eng. Hanifullah Hakimi
Business Math (Chapter 1 Percent)
Rana university, BBA department
Lecturer: 19
Eng. Hanifullah Hakimi
Business Math (Chapter 1 Percent)
Rana university, BBA department
Lecturer: 20
Eng. Hanifullah Hakimi
Business Math (Chapter 1 Percent)
Rana university, BBA department
Good luck!
End of Chapter one
Lecturer: 21
Eng. Hanifullah Hakimi