BUSINESS MATHEMATICS

Dr. Addial Manjonjo

21st September, 2022

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Percentages
In this Lecture we will cover:
I Converting between percentages and fractions
I converting between percentages and decimals
I Word problems involving percentages

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Percentage
Percent is the comparison of any number of parts to 100 parts.
Since the suffix “cent” represents 100, the word percent means
“per hundred.” We denote percent by the symbol %.

I The grid below is made up a hundred squares of which 13 are

shaded.
I The shaded region is 13 parts out a hundred i.e. 13%

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With the knowledge of fractions and decimals the conversion from
percentages to fractions or decimals or vice-versa becomes an easy
task.
Converting percentages to fractions

Since a percentage is number of parts per hundred, the it is

straightforward to write a percentage as a fraction. For example,
13
13% =
100

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Converting percentages to decimals
13
Converting 100 to decimal is also straightforward from here. Therefore,
13
13% = = 0.13
100
Example
Convert the following percentages to fractions

a) 20% b) 2.5% c) 2 14 % d) 150%

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Solution:
Convert the following percentages to fractions
20 1 2.5 25 1
a) 20% = 100 = 5 b) 2.5% = 100 = 1000 = 40

c) 2 14 % = 2.25 225
100 = 10000 =
9
400
d) 150% = 150 3
100 = 2

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Example
Convert the following percentages to decimals

a) 35% b) 2.02% c) 0.03%

Solution:
35 2.02
a) 35% = 100 = 0.35 b) 2.02% = 100 = 0.0202
0.03
c) 0.03% = 100 = 0.0003

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To convert a decimal or whole number into a percentage we simply multiply by 100%.
Example
Express the following into percentage.

a) 0.233 b) 4.07 c) 0.002

Solution:
a) 0.233 = 0.233 × 100% = 23.3%
b) 4.07 = 4.07 × 100% = 407%
c) 0.002 × 100% = 0.2%
100
Notice that multiplying a number by 100% is just multiplying by 100 and hence
does not change the original value.

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 I To convert a fraction to a percentage, we simply multiply the
fraction by 100%.
I Sometimes it may be easier to first convert into decimal and
then multiply by 100%.
Example

1 1
a) 5 b) 200 c) 1 81 d) 1
3

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Solution:
a) 15 = 15 × 100% = 20%
1 1
b) 200 = 200 × 100% = 12 %
c) 1 18 = 1.125 × 100% = 112.5%
d) 13 = 0.3 = 0.333 · · · × 100% = 33.3%

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Recall that the word “of” is interpreted as multiplication.
Example
Simplify the following

a) 5% of 10 b) 25% of 71

c) 5 12 % of 24 d) 500% of 1.02

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Solution:
5 50
a) 5% × 10 = 100 × 10 = 100 = 12
25
b) 25% = 100 × 71 = 71 4 = 17 4
3

c) 5 12 % × 24 = 100
5.5 132
× 24 = 100 = 1.32
d) 500% × 1.02 = 500 502
100 × 1.02 = 100 = 5.02

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Percentages are applied widely in many fields of commerce, construction
and science or everyday situations such as baking.
Example
In an Business Mathematics class, there 23 Financial Management
students, 14 Supply Chain Management students and 13 Information and
Technology Management students. What percentage of students in class;
a) are Financial Management students?
b) are Supply Chain Management students?
c) are Information and Technology Management students?
d) are not Information and Technology Management students?

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Solution:
a) The total number of students is
23 + 14 + 13 = 50
Therefore the Financial Management students as a percentage of
the whole class is
23
× 100% = 46%
50
b) The Supply Chain Management students as a percentage of the
whole class is
14
× 100% = 28%
50

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Solution:
c) The Information and Technology Management students as a percentage of the
whole class is
13
× 100% = 26%
50
d) The number students who are not Information and Technology Management is
50 − 13 = 37
As a percentage of the whole class, this number is
37
× 100% = 74%
50
We can also arrive at this answer by subtracting the percentage of Information and
Technology Management students (26%) from the total (100%). That is the
percentage of students who are not Information and Technology Management

students is
100% − 26% = 74%

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Example
The monthly pay of a worker is R9000. She does not pay tax on
the first R5500 but pays 10% of the remaining portion as tax.
a) How much tax does the worker pay?
b) How much money is she left with
c) What percentage of R9000 does she pay in tax?

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Solution:
a) The taxable amount here is 9000 − 5500 = 3500. The
amount of she pays in tax is 10% of 3500 i.e.
10
× 3500 = R350
100
b) Upon paying tax she is now left with
9000 − 350 = R8650
c) Since she paid 350 in tax, this amount as percentage of
9000 is
350
× 100 = 3.888...% = 3.89% to 2 decimal places
9000

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Example
The price of a bottle of cooking oil has increased by 23% from a price of 40 rands
a) By how much money has the price increased?
b) Find the new price of the bottle cooking oil?

Solution:
a)
23
increase = × 40 = R9.20
100
b)
New price = 40 + 9.2 = R49.20

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Example
The number of students who passed a Business mathematics module
increased from 72 to 99 in one year. What is the percent of increase?

Solution:
Percentage increase is given by the following formula
amount of increase
Percentage increase = × 100%
original
99 − 72
= × 100% = 37.5%
72

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