**Percentages**

A percentage is a fraction whose denominator is 100 (the numerator of a fraction
is the top term, the denominator is the bottom term).

So 30% = 30/100 = 3/10 = 0.3

To change a decimal into a percentage, multiply by 100. So 0.3 = 0.3 × 100 =
30% .

*Example*:

Find 25% of 10 (remember 'of' means 'times').

__25 × 10 __ (divide by 100 to convert the percentage to a
decimal)

100

= 2.5

**Percentage Change**

% change = __new value - original value__ × 100

original value

*Example*:

The price of some apples is increased from 48p to 67p. By how much percent has
the price increased by?

% change = __67 - 48__ × 100 = __39.58%__

48

**Percentage Error**

% error = __ error __ × 100

real value

*Example*:

Nicola measures the length of her textbook as 20cm. If the length is actually
17.6cm, what is the percentage error in Nicola's calculation?

% error = __20 - 17.6__ × 100 = __13.64%__

17.6

Original value

Original value = __ New value __ × 100

100 + %change

*Example*:

A dealer buys a stamp collection and sells it for £2700, making a 35% profit.
Find the cost of the collection.

It is the original value we wish to find, so the above formula is used.

__ 2700 __ × 100 = __£2000__

100 + 35

**Percentage Increases and Interest**

New value = __100 + percentage increase__ × original value

100

*Example*:

£500 is put in a bank where there is 6% per annum interest. Work out the amount
in the bank after 1 year.

In other words, the old value is £500 and it has been increased by 6%.

Therefore, new value = 106/100 × 500 = £530 .

**Compound Interest**

If in this example, the money was left in the bank for another year, the £530
would increase by 6%. The interest, therefore, will be higher than the previous
year (6% of £530 is more than 6% of £500). Every year, if the money is left
sitting in the bank account, the amount of interest paid would increase each
year. This phenomenon is known as compound interest.

The simple way to work out compound interest is to multiply the money that was
put in the bank by n^{m}, where n is (100 + percentage increase)/100 and
m is the number of years the money is in the bank for, i.e:

So if the £500 had been left in the bank for 9 years, the amount would have increased to:

**Percentage
decreases**:

New value = __100 - percentage decrease__ × original value

100

*Example*:

At the end of 1993 there were 5000 members of a certain rare breed of animal
remaining in the world. It is predicted that their number will decrease by 12%
each year. How many will be left at the end of 1995?

At the end of 1994, there will be (100 - 12)/100 × 5000 = 4400

At the end of 1995, there will be 88/100 × 4400 = __3872__

The compound interest formula above can also be used for percentage decreases. So after 4 years, the number of animals left would be:

5000
x [(100-12)/100]^{4} = 2998

© Matthew Pinkney