Unit 3 - Percentages
Unit 3 - Percentages
Unit 3 - Percentages
sales
Percentages
When do we use percentages?
Percentages can be used in lots of different ways. Here are some examples.
48
×100=80 %
60
Task
Percentages
Please complete all questions in your exercise books.
1. What percentage is 32p of £4.00?
2. A new healthy snack bar called 'Fibre-crunch' is being sold in the shops. Each bar weighs 40g and contains of 2g
protein, 3g of fat and 35g of carbohydrate. What percentage of protein, fat and carbohydrate does 'Fibre-crunch'
contain?
3. 200 people were invited to attend the opening night of Romeo and Juliet at Stafford castle. 26 people did not show
up. What percentage of the invited audience attended?
4. A review of microwave meals found that 12 of the 250 interviewed had never tried one, 28 said that they
occasionally bought them and one fifth said they buy them regularly .
1. What percentage of people interviewed said they had not tried one?
2. What percentage of people interviewed only bought them occasionally?
3. What percentage of people interviewed bought them on a regular basis?
Percentages
Calculate percentage change (any size increase and decrease), and
original value after percentage change.
Objectives L2 N06
Increase and decrease a given percentage.
Calculate percentage increase, decreases, discounts and
premiums including tax, commission and simple budgeting.
Percentage
Percentages can seem very tricky; however, if you follow the
steps in the next few slides, it will become much simpler.
We will learn that percentages can go up as well as down. Price
decreases in sales can be confusing; for example what is the
difference between “buy One Get One Free” 60% off or a off in
a sale? Confusing?
We will learn how to compare fractions, decimals and
percentages to each other; how to calculate decreases and
increases and finally we will look at some exam style questions.
Percentages
Increase and decrease a given percentage.
As we previously said, percentage values can go up and down. Prices for goods change… the
current economic crisis has seen gas, electricity, petrol and food prices escalate like never before;
but percentages are not confined to money; for example, it could be the number of students that
pass exams compared to the year before, how many migrants cross the English channel in a year
or what t chance there is of rain falling.
There are many ways to calculate percentage change. For example, if the price of a loaf of bread
increases by 15% what would be the new price if the old price was £1.20?
Percentages
Example:
Loaf of bread; old price £1.20 price increase 15%
Method one: Find 15% of £1.20.
1. Convert £1.20 to 120p and multiple by the decimal equivalent ( 15 ÷ 100) 120 x 0.15 = 18p
2. Add the original price and increase together. 120 + 18 = 138p
3. Convert back to pounds by dividing by 100 138 ÷ 100 = £1.38
Method 2: The original price of the loaf can be regarded as 100%. The price increase is an additional
15%.
4. Add both percentage values together and convert to a decimal. 100 + 15 = 115% 115 ÷ 100 = 1.15
5. Multiple original price by the decimal. 1.15 x 1.20 = £1.38
Price Changes Task
difference
X 100
original
24.50 – 20.21 X 100 = 17.5%
24.50
Percentage Change
Example, if a pair of Nike Air Force trainers has increased from £70
to £84… what would the percentage increase be.
difference
X 100
original
You may have noticed that the
calculation for percentage increase
is the same as for percentage
84 – 70 X 100 = 20%
decrease. 70
Percentage Change
Please note the original value must be regarded as 100%
The previous example gives us the answer of a 20% increase. We can
check our answer by adding the extra 20% to the original value of
100% 100 + 20 = 120
which means 120 100 = 1.20 (decimal)
If a pair of shoes increases in price by 20%, the new price will be
120% of the original price.
Old Price £70 Old Price + New Price New Price New Price
100% 20% 100 + 20 £70 x 1.2 £84.00
100
Percentage Change
You need to replace your broken Airpods and notice that Curry’s has a sale. The
Price has decreased from £169.00 to £129.00 but you want to know by what
percentage they have decreased.
First: work out the difference (decrease) between the two numbers you
are comparing.
Decrease = New Number - Original Number. 169 – 129 = 40
Then: divide the decrease by the original number and multiply the
answer by 100. 40 ÷ 169 = 0.237
0.237 x 100 = 23.7% decrease
% increase = Increase ÷ Original Number × 100.
Percentage Change Task
Complete all the calculations in your exercise books. Please show all working out.
1. The price of a family take-a-way has increased from £19.99 to £29.99, what is
the percentage increase?
2. Annual water bills have increased to £408 in 2022 from £367 in 2021, what is
the percentage increase?
3. The number of migrants entering the UK has fallen from 258k in 2020 to 240k
in 2021. What is the percentage decrease?
4. Bags of crisps has been reduced from 34g to 25g. What is the percentage
decrease in bag weight?
Task
Use the information on the previous slide to calculate the total annual
tax payable for the following
1. Annual income of £25,600
2. Annual income of £14,350
3. Hourly rate of £9.50, works 160 hours per month, full time.
Monthly
Budget
Task
Simple Budgeting
Let’s assume you are earning £10 per hour and working 37 hours per week. That
gives you an annual income of £19,240 per annum. You will pay £2,216.00 tax
and national insurance, leaving £17,024 per year take-home pay. That is £1,419
per month.
Total Budget £1,419
For Percentage Amount (£) Balance (£)
Utilities 10% 142 1277.00
Rent 42% 595.98 681.02
Council Tax 8.46% 120.05 560.97
Savings 15% 212.85
348.12
Percentages
Calculate amounts of money, compound interest, percentage increase,
decreases and discounts including tax and simple budgeting.
Objectives L2 M13
Use compound interest to find the final value when given an initial
investment over a period with a percentage interest rate.
Calculate simple interest in multiples of 5% on amounts of money.
Objectives L1 M18 M19
Increase and decrease a given percentage for multiples of 5%.
Key Words relating to Interest
Interest Money paid regularly at a particular rate. This could be money which is
in a bank account or money that has been borrowed, like a loan.
Convert change from one thing to another
Round To ‘round’ a number is to change the number to one that is less exact but
easier to use for calculations
Currency Another word for money
Profit The money earned or made when something is sold and any other costs
Discount To pay less for something; to get money off the price of an item
Exchange To swap for something else. In terms of money, this usually means
swap your British pounds for money from another country or the other way round.
Principle This is the original amount borrowed or invested
Simple Interest
Increase and decrease a given percentage for multiples of 5%.
What Is Simple Interest?
Simple interest is a quick and easy method of calculating the interest charge on a
loan. Simple interest is determined by multiplying the daily/monthly or annual
interest rate by the principal (this is the amount of money you borrowed)by the
number of days /months, years that elapse between payments.
This type of interest usually applies to bank loans or short-term loans, although
some mortgages use this calculation method.
Simple interest benefits consumers who pay their loans on time or early each month.
Car loans and short-term personal loans are usually simple interest loans.
Simple Interest
Calculation: I = P(
I= Interest, P = Principle, t = time in years
The new amount of money in the account will be £110 or 110% of the original. In year two the
value of the money in the account will increase by 10% again.
The new amount would be £121 or 121% of the original. This is because we have increased £110
by 10%.
Compound Interest
Compound interest formula
Using the formula:
A = Total amount, P = Principle (total amount invested or borrowed) r = percentage rate and t = time in
years/number of changes
Let’s calculate a 3% (r) increase on an amount of £500 (P) using compound interest over 4 (t)years.
When calculating 3% Divide the amount by 100 to give the decimal. This can also be written as:
∴ A = P x 1.03t
The £2,000 is 100% of the money you want to borrow, now add the 4% and turn into a decimal.
(100+4)/100=1.04
Year 1: 2000 x 1.04 = 2080
Year 2: 2080 x 1.04 = 2163.20
Year 3: 2163.20 x 1.04 = 2249.73
Year 4: 2249.73 x 1.04 = 2339.72
1.04 x 1.04 x 1.04 x 1.04 x 2000 = 2339.72 1.044x 2000 = 2339.72
Compound Interest
Nathan invests £3000 in the bank for two years. It earns compound interest of 10%
per year.
Calculate the total amount of money that Nathan has in the bank after two years.
Amount Invested Interest Rate (as a Year Number Interest after year
decimal + 1) end
£3000 1.10 1 3000 x 1.10 = 3300
£3300 1.10 2 33.00 x 1.10 = 3630
We could have calculated quite easily without a calculator. 10% of 3000 = 300
3000 + 300 = 3300
10% of 3300 = 330 3300 + 330 = 3600
Compound Interest
Emily invests £8000 in the bank for 4 years. It earns compound interest of 3% per year.
Calculate the total amount of money that Emily has in the bank after 4 years.
Principle x Interest rate as a decimal + 1 x time
8000 x 1.03 x 1.03 x 1.03 x 1.03 = £9004.07
We can do this much simpler on a calculator. Type 1.03 and press Yx then type 4 and then equals.
y x
Compound Interest
Example: Stephanie’s full water tank at her home has This is a very
different question as
sprung a leak. It will lose 5% of its water every hour. it is not based on
What percentage of the water will be left after 3 hours? money and the
amount is
Initial amount x percentage x time We have to look t the decreasing. We also
percentage rate differently too. The question states it is don’t know the initial
losing 5% per hour. 100 – 5 = 95% amount, but we
know the water tank
95% ÷ 100 = 0.95 was full, so it
contained 100%
100% x 0.953 = 85.7375% of water left in the water
tank after 3 hours
Compound Interest
Looking at the previous question; how would we calculate if it said what
percentage of the water had leaked from the water tank?
It is simply the original 100% - 85.7375 = 14.2625%
Now let’s suppose the water tank had a full capacity of 75litres. How much
water would be lost?
Initial amount x percentage x time We have to look at the percentage rate
differently too. The question states it is losing 5% per hour. 100 – 5 = 95%
95% ÷ 100 = 0.95
75 litres x 0.953 = 64.3031 litres of water left in the water tank after 3 hours
Task
Compound Interest
Exercise 5
Complete all the questions on the task sheet
Please work on your own… you can use a calculator. Try using the
‘Power of’ button on the calculator.
Try and complete all ten questions in 20 minutes
Reverse Percentage
Calculate percentage change (any size increase and decrease), and
original value after percentage change.
Objectives L2 N06
Work out reverse percentage problems, such as what was the
original cost if the sale price is £50 after a reduction of 10%.
Reverse Percentage
What is reverse percentage?
Reverse percentages (or inverse percentages) means working backwards to find an original
amount, given a percentage of that amount. We can do this using a calculator by taking the
percentage we have been given, dividing to find 1% and then multiplying by 100 to find 100% .
This looks very complicated, but it really isn’t…
When we are calculating reverse percentages we are generally trying to find the value at 100%.
Questions will relate to new prices being either higher or lower than the original price.
100% + 9%
109% New Price
£14.25 = 109%
109 ÷ 109
0.1307 = 1
100 x 100
£13.07 = 100%
Reverse Percentage
The price of a house has increased by 15% and now costs £207,000. What was the original price
of the house?
Old Price Increase
100% + 15%
115%
New Price
£207,000 = 115%
115 ÷ 115
1800 = 1
100 x 100
£180,000 = 100%
We can look at this problem in a more traditional maths way too.
Reverse Percentage
Let’s look at the same question again. The price of a house has increased by 15% and now costs
£207,000. What was the original price of the house?
The house price has increased by 15%, therefore it is 115% of its original value. Convert 115% to
a decimal by dividing by 100 and then divide the original price by the decimal…
207,000 = £180,000
(115 ÷ 100)
Whichever way you prefer, is fine. More examples follow.
Reverse Percentage
A pair of sunglasses is reduced by 20% and is sold for £72.00. What was the original price?
100% - 20%
80%
The sunglasses have decreased in price
£72 = 80% by 20%. 100 – 20 = 80%
80 ÷ 80
0.9 = 1 72 = £90
100 x 100 0.8
£90 = 100%
Reverse Percentage
An annual train ticket between Tamworth and Stafford rises in value by 15%. The Increase is
£36.00. What was the cost of the train ticket before and after the increase
100% + 15
%
115%
£36 = 15% This question is very 36
different because we = £240
15 ÷ 15 0.15
know the value of the
2.4 = 1 15 % increase;
100 x 100 however, we can still
£240 = 100% use the table.
Task
Reverse Percentage
Exercise 6
Complete all the questions from the task sheet in your exercise
books.
You must show all your working out, regardless of which method you
use.
Please work on your own… you can use a calculator.
Percentages, Fractions & Decimals
Identify and know the equivalence between fractions, decimals
and percentages.
Objectives L2 N04
Change a percentage to a fraction or decimal and vice versa.
Convert fractions to decimals and vice versa.
Percentages to Decimals
How do we convert a percentage to a decimal?
To convert a percentage to a decimal, simply divide by 100. Move the
decimal point 2 places to the left.
For example; 75% is exactly the same as 75.0% but now we have a
decimal point.
7 5 . 0 % ÷ 100 = 0.75
Decimal point moves here
3 8 x 100 37.5%
22 80
12.5%
0.3125
Find the Percentage
What percentage of these blocks are red?
A fairly straight forward question… or is it?
As a fraction it is? 4
10
As a decimals it is?
0.4
As a percentage it is?
40 %
Percentage, Decimal and Fractions
A Half can be written
Which means 1 which gives the answer as a decimal. 0.5
To change that decimal to a percentage we simply multiply by 100
0.5 x 100 = 50%
A little more difficult. This pizza has been cut into 20 equal slices. 11 of the slices
have already been eaten. We write this as a fraction:
Which means 11 which gives the answer as a decimal. 0.55
To change that decimal to a percentage we simply multiply by 100
0.55 x 100 = 55%
If you were asked what percentage remained you have two choices. 9 20 = 0.45
0.45 x 100 = 45% or we could use the first value because we know that a whole
pizza is 100% and calculate 100 – 55 = 45%
Percentages to Fractions
Converting percentages to Fractions is very straightforward because we can
write any percentage out of 100. For example 45% is
Convert 80% to a decimal (= 80 100): = 0.8
Write down the decimal "over" the number 1
Multiply top and bottom by 10 for every number after the decimal point (10
for 1 number,100 for 2 numbers, etc)
This makes a correctly formed fraction: Than, if we can, simplify the fraction.
Percentages to Fractions
If you are tasked to convert 37.5% to a fraction we follow the steps on the previous slide.
= 37.5 =
= = We now need to simplify this. From previous lessons, we used the LCM…
The LCM is 125, but that is far too complicated. Let’s try 5
375 5 = 75; 1000 5 – 200 = ; we can use 5 again 75 5 = 15; 200 5 = 40
… not there quite yet. Try 5 again. 15 5 = 3; 40 5 = 8 =
When the percentage is above 100, we need to convert to a mixed fraction.
Percentages
Identify and know the equivalence between fractions, decimals
and percentages.
Objectives L2 N04
Compare fractions, decimals and percentages
Compare Fractions, Decimals &
Percentages
Identify and know the equivalence between fractions, decimals and percentages.
We have seen on the previous slides how to convert between percentages,
decimals and fraction; now we need to know how to compare their sizes; for
example,
Order the following numbers in order size from smallest to largest.