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One common error is when interpreting percentages is when measuring growth. For instance, let’s assume you and your company sold 10,000 bags of cake flour in 2019. In 2020, that number increased by 60,000 bags. It’s tempting to say that your sales grew by 600%. The two circles, together with the line, represent the number 100. By the 1800s, the modern percent symbol dropped the p abbreviation that preceded it. Writers also slanted the line between the two circles. In the first part, we took 30% of 100. In the second part, we took 30% of 70. Again, the basis for the percentage changes each time you increase or decrease its value. Take note of this to avoid making the same mistake. Working with Populations Retailers jostle for your attention by marking down their prices using percentage discounts. On the surface, they can be very tempting. How good a deal they are depends on the size of the discount. A price cut that’s 20% off is good, depending on the item you’re buying. A 50% discount, when you can find one, is even better.Let’s see this in action. Suppose you’ve read an article on the local news that says 12% of respondents prefer pineapple on a pizza. Most news articles will not provide the tabular data of surveys like this. They might, however, mention the population size of that survey. In our example, the article mentions that the surveyors interviewed 5,000 people. Without looking at the study’s data, we can determine how many people gave that answer: Given how we base percentages on a 100 denominator, it’s understandable why this is confusing. We tend to presume we are starting with the same whole number. When in reality, increasing or decreasing that number has changed the basis for the percentage. While it’s easy when you’re working with a figure that’s exactly 100, what about other numbers? In the example, the whole number is 40. We know that 50% or half of 40 is 20, and 25% or ¼ of 40 is 10. But how do we calculate this? Here’s the basic percent formula you can use: We tend to misunderstand percentages, especially for something we use all the time. Fortunately, we can avoid some of the most egregious missteps. A good way to avoid mistakes is to clarify how we use percentages in a given context. Thinking in terms of percentages also makes it easier to compare the amount of figures between each other. With a common denominator of 100, you’ll get a clearer idea of how much more or less a figure represents compared to another. Applying Basic Percentage Calculations

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Now, let’s say a class of 40 students had 25% girls and 75% boys. Then you’re asked to determine the precise number of boys and girls in the class. How do you do this? Simply change the formula a bit to solve for x: If you’re not used to calculating in percentages, you might think 30% and 15% off would mean 45% off. This is wrong. Percentages do not work that way. What you do is take 30% off and compute it with the original price. Then, you take 15% off from the coupon and also compute it with the original price. When you already have the decimal value, move the decimal point two places to the left. Thus, 2% is 0.02 and 50% is 0.5. Now, if you increase 70 by 30%, you get 91. Notice that it does not restore the number of your objects to 100. This is because 30% of 70 is equal to 21. Measuring changes in size: Percentages measure how much a thing changed in size or value relative to how it was before. For instance, an investor’s portfolio may have grown in size by 4% of its original value over the past year.

A percent does not always have to indicate a few hundredths of the whole. This way, solutions are also shown in percentages. A physiological salt solution is, for example, referred to as a solution of 0.9% kitchen salt. This 0.9% means that the solution contains 0.9 grams of salt per 100 mL (= 100 grams). The percentage here therefore refers to the weight. Next, let’s talk about credit cards. If you have a credit card balance from month to month, you should pay it ASAP. Unlike mortgages and car loans with fixed terms, credit card debt is harder to pay down. Left unpaid too long, this can spiral into toxic debt because of compound interest. You also need exact measurements when you’re baking. To get the desired texture and consistency, you must make sure you only use the amounts you need. It can be hard to determine precise measurements for non-fluid ingredients. Thus, bakers have a specific system to measure percentages based on the weight of the ingredients. Sales Tax, Discounts, & Coupons