Percentages A percentage is simply a fraction out of 100: 24 100 78

10/02/2016
Percentages
A percentage is simply a fraction out of 100:
24
100
78
100
97
100
24%
78%
97%
The symbol % is used to stand for β€œout of 100”.
So, all of the fractions above can be written:
To convert any fraction into a percentage, simply multiply it by 100:
For example:
1
4
1
× 100 = 25%
4
Example A student scored 41 out of 60 possible marks, express their score as a percentage.
The fraction of marks obtained is:
41
60
To convert it to a percentage, multiply it by 100:
41
× 100 = 68.3 %
60
Percentages
Values, such as prices, can change; we need to be able to express these changes as percentages.
The basic equation which affects these value changes is:
𝑁𝑒𝑀 π‘£π‘Žπ‘™π‘’π‘’ = 𝑂𝑙𝑑 π‘£π‘Žπ‘™π‘’π‘’ ×
𝑃
100
𝑁=𝑂×
𝑃
100
which we will shorten to:
Notice:
If 𝑃 = 100, there would be no change in value: 𝑁 = 𝑂.
If 𝑃 < 100, there would be a decrease in value: 𝑁 < 𝑂.
If 𝑃 > 100, there would be an increase in value: 𝑁 > 𝑂.
Example A PC costing £750 is reduced in price by 15%, what is its new price?
To reduce the price by 15%, use: 𝑃 = 100 βˆ’ 15 = 85
𝑁=𝑂×
𝑃
100
𝑁 = 750 ×
85
100
= £637.50
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10/02/2016
Percentages
Values, such as prices, can change; we need to be able to express these changes as percentages.
The basic equation which affects these value changes is:
𝑁𝑒𝑀 π‘£π‘Žπ‘™π‘’π‘’ = 𝑂𝑙𝑑 π‘£π‘Žπ‘™π‘’π‘’ ×
𝑃
100
𝑁=𝑂×
𝑃
100
which we will shorten to:
Notice:
If 𝑃 = 100, there would be no change in value: 𝑁 = 𝑂.
If 𝑃 < 100, there would be a decrease in value: 𝑁 < 𝑂.
If 𝑃 > 100, there would be an increase in value: 𝑁 > 𝑂.
Example An employee earning £27,000 gets a 5% pay rise; what is his new salary?
To raise the salary by 5%, use:
𝑁=𝑂×
𝑃 = 100 + 5 = 105
𝑃
100
𝑁 = 27000 ×
105
= £28,350
100
Percentages
Example A house was bought for £75,000 and then resold for £87,000; what is the percentage
increase in the value of the house?
𝑁=𝑂×
𝑃
100
Here:
𝑂 = 75,000 𝑁 = 87,000
Substitute these values into the equation and re-arrange for 𝑃:
87,000 = 75,000 ×
𝑃=
𝑃
100
87,000
× 100
75,000
𝑃 = 116
The increase in percentage is therefore 16%
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10/02/2016
Percentages
Past Exam Question A language school is trying to encourage its clients to use their website.
They offer a 12% discount to anyone who pays for their courses online.
a) A 4 week summer course usually costs £429, how much would it cost if paid for online?
b) An 8 week course cost £648. It was bought online, how much did it cost before the discount?
a) 𝑁 = 𝑂 ×
𝑃
Here:
100
𝑂 = 429
𝑁 = 429 ×
b) 𝑁 = 𝑂 ×
𝑃
Here:
100
𝑂 =?
𝑁 =?
88
= 377.52
100
𝑁 = 648
648 = 𝑂 ×
𝑂=
𝑃 = 100 βˆ’ 12 = 88
𝑃 = 100 βˆ’ 12 = 88
88
100
648
× 100
88
𝑂 = 736.36
Percentage Profit
Companies produce products and services in the hope of making a profit.
π‘ƒπ‘Ÿπ‘œπ‘“π‘–π‘‘ = 𝑅𝑒𝑣𝑒𝑛𝑒𝑒 βˆ’ π‘π‘œπ‘ π‘‘
Where revenue is the money received by the company
The cost is what the company pays out in order to
produce its products and services.
There are two ways of measuring the profit as a percentage:
Profit over cost:
π‘ƒπ‘Ÿπ‘œπ‘“π‘–π‘‘
× 100
πΆπ‘œπ‘ π‘‘
Profit margin:
π‘ƒπ‘Ÿπ‘œπ‘“π‘–π‘‘
× 100
𝑅𝑒𝑣𝑒𝑛𝑒𝑒
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10/02/2016
Percentage Profit
Past Exam Question
a)
π‘ƒπ‘Ÿπ‘œπ‘“π‘–π‘‘ = 𝑅𝑒𝑣𝑒𝑛𝑒𝑒 βˆ’ π‘π‘œπ‘ π‘‘ Let 𝑛 = π‘›π‘’π‘šπ‘π‘’π‘Ÿ π‘œπ‘“ π‘π‘Žπ‘™π‘π‘’π‘™π‘Žπ‘‘π‘œπ‘Ÿπ‘  π‘ π‘œπ‘™π‘‘.
π‘ƒπ‘Ÿπ‘œπ‘“π‘–π‘‘ = 4500
𝑅𝑒𝑣𝑒𝑛𝑒𝑒 = 5.50 × π‘›
π‘π‘œπ‘ π‘‘ = 12,000
4500 = 5.5𝑛 βˆ’ 12000
𝑛=
4500 + 12000
5.5
𝑛 = 3000.
b)
Profit over cost:
4500
× 100 = 37.5%
12000
Percentage Profit
Past Exam Question
c)
π‘ƒπ‘Ÿπ‘œπ‘“π‘–π‘‘ = 𝑅𝑒𝑣𝑒𝑛𝑒𝑒 βˆ’ π‘π‘œπ‘ π‘‘
𝑅𝑒𝑣𝑒𝑛𝑒𝑒 = π‘›π‘’π‘šπ‘π‘’π‘Ÿ π‘ π‘œπ‘™π‘‘ × π‘π‘Ÿπ‘–π‘π‘’ = 2500𝑝
π‘ƒπ‘Ÿπ‘œπ‘“π‘–π‘‘ = 2500𝑝 βˆ’ 12000
Profit over cost = 24%
π‘ƒπ‘Ÿπ‘œπ‘“π‘–π‘‘
× 100 = 24
πΆπ‘œπ‘ π‘‘
2500𝑝 βˆ’ 12000
× 100 = 24
12000
2500𝑝 =
24 × 12000
+ 12000
100
𝑝 = £ 5.95
4