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Everyday Use of Percentages
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Practice Questions

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Percentages Units

Percentages are an important part of our everyday lives. 
Percentage is a very handy way of writing fractions.
Percentages can be compared more easily than fractions.

  • Shops advertise discounts on products.  These discounts are percentages.
    "Up to 50% off marked prices"

  • Financial institutions quote interest charged to the client on loans, or interest paid for money invested, as a percentage.
    "Housing Loans-4.95% p.a. for the first 12 months"
    Interest paid may be as Simple Interest or Compound Interest.

  • Companies describe their success or failure as an increase or decrease in profit levels.
    "C-Company profit down by 15% for the last financial year"

  • A salesperson may be given a commission as payment for selling goods.  The commission can be a percentage of the sales made.
    "Position Vacant:  20% commission on all sales to the successful applicant."

  • Articles such as antiques or jewellery may increase in value as time goes by-appreciation.

  • Items such as equipment and machinery usually decrease in value-depreciation




Example 1 Example 2 Example 3 Example 4 Example 5


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Example 1

Discount can be written as a percentage of the marked price.

Find the sale price if 15% discount is allowed off marked price of $25.00

PEREVA.GIF (3079 bytes)

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Example 2
Percentage Increase/Decrease

Last year a ticket to the football was $11.00.  This year the price has been increased by 10%.  What is the price of a ticket this year?


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Example 3
Bank Interest
This is an  example of Simple Interest(see below for Compound Interest)

What interest will be paid on a deposit of $200 at 4% p.a. after
a)   1 year
b)   3 years


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Example 4
Sometimes Compound Interest is paid instead of Simple Interest.
Each year the interest is worked out using the Principal + Interest, where in this case the Principal is the $200 and in the first year the Interest is the $8.00 at the rate of 4% per annum.

2nd Year:  
PEREVD.GIF (5943 bytes)

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Example 5

A salesman is on a commission rate of 5%.  How much commission does he make on sales worth $1500?



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Problem 1

Concession card holders pay $1.20 for a 2 hour Met ticket.  Full fare is $2.30.   What is the percentage discount for concession card holders?

See Solution


Problem 2

A jumper has been reduced by 25%.  The original price was $40.00.  What is the new price?

See Solution


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Practice Questions

Question 1

Find the Simple Interest for two years on $100 at 6% p.a..

Question 2

Find the Compound Interest for two years on $100 at 6% p.a..


Question 3

A person buys a car for $1500 and sells it for $1250. 
a) What is the loss as a percentage of the selling price?
b) What is the loss as a percentage of the cost price?


Question 4

How much is 2.5% commission on $400?


Question 5

A discount of $90 was given on a microwave oven marked at $270. Find
a) the price paid
b) the discount as a percentage of the marked price.


Question 6

A milkbar owner buys coffee at $12.00 a jar and adds on 30% profit.  At what price does he sell each jar?


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Solution 1
PEREVF.GIF (2883 bytes)back to Have a Go


Solution 2

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