Percent Applications

Grade 7 Mathematics

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The Big Idea

PERCENT means "per hundred." To find a percent of a number, convert the percent to a decimal (divide by 100), then MULTIPLY.

Example: 25% of 80 = 0.25 x 80 = 20

Essential Formulas to Know

Tax/Tip/Markup: Amount = Original x Rate (as decimal)

Discount: Sale Price = Original - (Original x Rate)

Percent Change: (New - Original) / Original x 100

Simple Interest: I = P x r x t

Example 1: Tax and Tip

Restaurant Problem: Your meal costs $35. Calculate 7% tax and 20% tip.

1

Convert percent to decimal: 7% = 0.07 and 20% = 0.20

2

Calculate tax: Tax = 0.07 x $35 = $2.45

3

Calculate tip: Tip = 0.20 x $35 = $7.00

4

Find total: $35 + $2.45 + $7.00 = $44.45

Example 2: Discount and Sale Price

A jacket costs $80 and is 25% off. What's the sale price?

Method 1: Find discount, then subtract

1

Discount = 0.25 x $80 = $20

2

Sale price = $80 - $20 = $60

Method 2: Shortcut - Find what percent you PAY

1

If 25% off, you pay 100% - 25% = 75%

2

Sale price = 0.75 x $80 = $60

TRAP ALERT: Percent Change - Use the ORIGINAL!

WRONG: A price went from $50 to $60. The increase is $10, so the percent increase is 10/60 = 16.7%.

RIGHT: Percent change = (New - Original) / ORIGINAL x 100 = (60-50)/50 x 100 = 10/50 x 100 = 20%. Always divide by the ORIGINAL amount!

Example 3: Percent Increase and Decrease

Formula: Percent Change = (New - Original) / Original x 100

Percent Increase Example: Population grew from 800 to 1,000

1

Change = 1,000 - 800 = 200 (increase)

2

Percent increase = 200/800 x 100 = 25%

Percent Decrease Example: Price dropped from $120 to $90

1

Change = 120 - 90 = 30 (decrease)

2

Percent decrease = 30/120 x 100 = 25%

Example 4: Simple Interest

I = P x r x t

I = Interest | P = Principal (starting $) | r = Rate (decimal) | t = Time (years)

You deposit $600 at 5% annual interest for 4 years. How much interest do you earn?

1

Identify: P = $600, r = 5% = 0.05, t = 4 years

2

Calculate: I = 600 x 0.05 x 4 = $120

3

Total in account: $600 + $120 = $720

Your Turn: Practice Problems

1. A video game costs $50. If the sales tax is 6%, what is the total cost?

Tax amount: $ Total: $

2. A bike is on sale for 30% off. The original price is $150. What is the sale price?

Discount: $ Sale Price: $

3. A town's population increased from 5,000 to 6,500. What is the percent increase?

Change: Percent increase: %

4. Calculate the simple interest on $800 at 3% for 5 years.

I = P x r x t = x x = $

Remember!