Amount, Base, and Rate

Similar documents
The Mathematics 11 Competency Test Percent Increase or Decrease

Financial Mathematics

Math Refresher. Book #2. Workers Opportunities Resources Knowledge

2. In solving percent problems with a proportion, use the following pattern:

5.1 Simple and Compound Interest

To Multiply Decimals

Fractions, decimals and percentages

Solutions of Linear Equations in One Variable

Chapter 3 Review Math 1030

DIVISION OF DECIMALS We then we multiply by the

Maths Workshop for Parents 2. Fractions and Algebra

3.1. Solving linear equations. Introduction. Prerequisites. Learning Outcomes. Learning Style

Sequences. A sequence is a list of numbers, or a pattern, which obeys a rule.

0.8 Rational Expressions and Equations

Part 1 Expressions, Equations, and Inequalities: Simplifying and Solving

All the examples in this worksheet and all the answers to questions are available as answer sheets or videos.

PERPETUITIES NARRATIVE SCRIPT 2004 SOUTH-WESTERN, A THOMSON BUSINESS

PERCENT COMPETENCY PACKET

Lecture Notes on MONEY, BANKING, AND FINANCIAL MARKETS. Peter N. Ireland Department of Economics Boston College.

Equations, Inequalities & Partial Fractions

Mathematics Practice for Nursing and Midwifery Ratio Percentage. 3:2 means that for every 3 items of the first type we have 2 items of the second.

Changing a Decimal or Fraction to a Percent

Revision Notes Adult Numeracy Level 2

3.3 Addition and Subtraction of Rational Numbers

Systems of Linear Equations: Two Variables

Welcome to Basic Math Skills!

Percentages. You will need a calculator 20% =

Introduction. Percent Increase/Decrease. Module #1: Percents Bus 130 1

Also, compositions of an exponential function with another function are also referred to as exponential. An example would be f(x) = x.

Wigan LEA Numeracy Centre. Year 6 Mental Arithmetic Tests. Block 1

TIME VALUE OF MONEY PROBLEM #7: MORTGAGE AMORTIZATION

Pre-Algebra Lecture 6

3. Time value of money. We will review some tools for discounting cash flows.

1.6 The Order of Operations

Chapter 27: Taxation. 27.1: Introduction. 27.2: The Two Prices with a Tax. 27.2: The Pre-Tax Position

Measurements 1. BIRKBECK MATHS SUPPORT In this section we will look at. Helping you practice. Online Quizzes and Videos

1.7 Graphs of Functions

LINEAR INEQUALITIES. Mathematics is the art of saying many things in many different ways. MAXWELL

The Concept of Present Value

Gas Money Gas isn t free. In fact, it s one of the largest expenses many people have each month.

I. Introduction to Taxation

Numeracy and mathematics Experiences and outcomes

Lesson Plan -- Simple and Compound Interest

Forward exchange rates

Prealgebra. Percent Change

PERCENTS - compliments of Dan Mosenkis

Sample Math Questions: Student- Produced Response

Unit 1 Number Sense. In this unit, students will study repeating decimals, percents, fractions, decimals, and proportions.

Formulas and Problem Solving

Ch. 11.2: Installment Buying

5.4 Solving Percent Problems Using the Percent Equation

3.4 Multiplication and Division of Rational Numbers

Solutions of Equations in Two Variables

Years after US Student to Teacher Ratio

Monomial Factors. Sometimes the expression to be factored is simple enough to be able to use straightforward inspection.

FI3300 Corporation Finance

Temperature Scales. The metric system that we are now using includes a unit that is specific for the representation of measured temperatures.

PERCENTS. Percent means per hundred. Writing a number as a percent is a way of comparing the number with 100. For example: 42% =

Elasticity. I. What is Elasticity?

hp calculators HP 17bII+ Net Present Value and Internal Rate of Return Cash Flow Zero A Series of Cash Flows What Net Present Value Is

$ Example If you can earn 6% interest, what lump sum must be deposited now so that its value will be $3500 after 9 months?

Depreciation. General Mathematics HSC. Name:

Lecture Notes on MONEY, BANKING, AND FINANCIAL MARKETS. Peter N. Ireland Department of Economics Boston College.

Preliminary Mathematics

Lesson Plan. N.RN.3: Use properties of rational and irrational numbers.

Chapter 3. The Concept of Elasticity and Consumer and Producer Surplus. Chapter Objectives. Chapter Outline

COWLEY COUNTY COMMUNITY COLLEGE REVIEW GUIDE Compass Algebra Level 2

Algebra Word Problems

Base Conversion written by Cathy Saxton

4 Percentages Chapter notes

+ = has become. has become. Maths in School. Fraction Calculations in School. by Kate Robinson

Decimals and Percentages

LESSON SUMMARY. Mathematics for Buying, Selling, Borrowing and Investing

20(-1) - (-4) (-5) 10)

Click on the links below to jump directly to the relevant section

Medium term Plan for Summer Year 3

Math and FUNDRAISING. Ex. 73, p

Reference: Gregory Mankiw s Principles of Macroeconomics, 2 nd edition, Chapters 10 and 11. Gross Domestic Product

APPENDIX. Interest Concepts of Future and Present Value. Concept of Interest TIME VALUE OF MONEY BASIC INTEREST CONCEPTS

Preparing cash budgets

Characteristics of the Four Main Geometrical Figures

MATHEMATICS. Y4 Multiplication and Division 4350 Understand remainders Relate fractions to division. Equipment. MathSphere

Solving Equations by the Multiplication Property

Solution Guide Chapter 14 Mixing Fractions, Decimals, and Percents Together

c 2008 Je rey A. Miron We have described the constraints that a consumer faces, i.e., discussed the budget constraint.

Basic numerical skills: FRACTIONS, DECIMALS, PROPORTIONS, RATIOS AND PERCENTAGES

WRITING PROOFS. Christopher Heil Georgia Institute of Technology

Balancing Chemical Equations

Customer Lifetime Value II

Current Yield Calculation

Oral and mental starter

Following are Summaries from Two Chemistry Education Web Sites Concerning Significant Figure Rules

Fractions. Chapter Understanding fractions

Investment Appraisal INTRODUCTION

Section 5.4 Multiplying Decimals

Using Proportions to Solve Percent Problems I

1 st Grade Math Do-Anytime Activities

Chapter 3: Ratio, Proportion & Percent

Linear Programming Notes V Problem Transformations

PIZZA! PIZZA! TEACHER S GUIDE and ANSWER KEY

Transcription:

The Mathematics 11 Competency Test, Base, and Rate Sorting out a percent problem always involves correctly attaching numbers to three fundamental quantities: the percent (rate), the value to which the percent rate is applied, and the resulting amount of material or amount of change. Here we will use the full words to represent each quantity, but when you ve developed some skill in algebra, you could use shorter symbols (such as A for amount, b for, and r for rate ). The percent rate is just the percent value with which we are dealing. So when we say the metal alloy is 10% zinc, the percent rate of zinc in the alloy is equal to 10% Hank has received a 5% salary increase, the percent rate of change in Hank s salary is equal to 5%. When it comes time to do calculations involving the percent rate, we always use the fractional or decimal value corresponding to the percent rate. The value is the value of the quantity to which the percent rate is applied. Every percent rate is always associated with a very specific apart from this value, a percent rate has no meaning. The easiest way to identify the quantity is to ask percent of what? The what here must be a numerical quantity. So when we say the metal alloy is 10% zinc, the that the percent rate refers to is the total mass of metal alloy. (Ask: Zinc is 10% of what? Answer: It is the total mass of the metal alloy that zinc makes up 10%.) Hank has received a 5% salary increase the to which the percent rate is applied is his previous salary. (Ask: The increase is 5% of what? Answer: It is Hank s previous salary that the increase is 5% of.) Sometimes when people are speaking of percent change, they use the term original value instead of. The two terms mean exactly the same thing. The amount is the actual quantity of stuff or quantity of change that is represented by the stated percent of the. The amount and the, as these words are used here, always have the same units (and in fact, are almost always quantities that have units of measurement). So, when we say the metal alloy is 10% zinc, the amount of zinc is the actual number of kilograms (say) of zinc in the kilograms of alloy that is present. Hank has received a 5% salary increase, the amount of this increase is the additional dollars and cents he receives for each hour, say, of work. The relationship between these three fundamental characteristics of a percent problem is very simple: = rate David W. Sabo (2003), Base, and Rate Page 1 of 5

If you know a bit of algebra already, you know that this formula can easily be rearranged to give = rate and Thus, if we know any two of these three quantities, it is easy to calculate the third one. In all of these formulas, rate stands for the fractional or decimal form of the percent value. Example 1: Calculate 67% of 586. Clearly 67% is the rate here. Since the value 586 follows the word of in 67% of 586, 586 must be the to which the percent refers. Then, the question is asking for the amount corresponding to 67% of 586. So = x rate = 586 x 0.67 = 392.62. Note that we used 0.67, the decimal equivalent of 67%. So, to respond to the instruction, 67% of 586 is 392.62. You might get a better sense of the way language is being used here if you note that 67% is equivalent to 67/100 or about two-thirds as a fraction. When we say, calculate two-thirds of 586, we mean multiply 586 by two-thirds. In a similar way, since 67% is equivalent to the decimal value 0.67, to calculate 67% of 586 is to calculate 0.67 of 586, and indicates the result of multiplying 586 by 0.67. Example 2: Hank buys a DVD player on sale. Before tax, he is given a 30% discount which reduces the price by $68.99. What was the original price of the DVD player? The rate here is 30% or 0.30. This 30% discount is applied to the original price of the DVD player (so the original price must be the corresponding to the rate of 30% -- this means that the question is asking us to find a value). The $68.99 is the amount of dollars that the 30% of the original () price amounted to. So, we are told the rate and the amount, and we are asked to find the. Using = rate = 68.99 $ 0.30 = 229.96666 $ David W. Sabo (2003), Base, and Rate Page 2 of 5

Now, prices of DVD players do not normally include fractions of cents. So, at the least we should round our final answer off to the nearest cent. To respond to the question, then we can state that it appears that the original price of the DVD player must have been $229.97. (Note that you can check this answer. Just calculate how much money that 30% of $229.97 amounts to. You should get $68.99 if we haven t made a mistake here.) Example 3: Hank buys a house for $227,000. One month later he sells the house for an additional $15,500 more than he paid for it. By what percent did the price of the house increase? The question asks us for a percent, which means we are being asked to calculate a rate. The formula we have for a rate is So, to be able to calculate a rate, we need to identify the values of the relevant and amount. Recalling that the is the original value of whatever is changing, we conclude that the appropriate value here must be the original price of the house, $227,000. The is the amount by which the values changes. Here the original price of the house increased by $15,500, so this is the in the formula. Substituting these values into the formula gives $15,500 = 0.06828 $227,000 rounded to five decimal places. To get the percent equivalent of this decimal value, we need to multiply by 100: 0.06828 x 100 6.828% Thus, the price of the house increased by 6.828%. Example 4: If the price of a new car is $27,545, and tax is payable on this car at a rate of 14.5%, how much tax must the purchaser actually pay? The rate of tax is 14.5%. This rate of taxation is d on the actual price of the car. The tax paid, the amount of tax paid in dollars is then = x rate = $27,545 x 0.145 = $3994.03 Example 5: One day Hank spent $42.50 on gasoline and $123.75 on a textbook. What percent of his purchases that day was for gasoline? David W. Sabo (2003), Base, and Rate Page 3 of 5

There s a bit of a twist here, but it s not too hard to sort things out. Clearly, we are asked for a percent, so we need to calculate a rate, and the formula for that is The part of his expenses for which a rate is requested is the part Hank spent on gasoline. So here = $42.50 The value to which this percent applies must then be the total amount of money Hank spent that day: So = $42.50 + $123.75 = $166.25 $42.50 = $166.25 = 0.2556 rounded to four decimal places. This decimal fraction corresponds to 25.56%. So, 25.56% of Hank s expenses for that day were for gasoline. Example 6: The label on a 1.5 litre bottle of wine that Hank buys states that it is 11.7% alcohol by volume. How many millilitres of alcohol are present in that bottle of wine. Here we have a straightforward request to calculate the. When we are told the alcohol is 11.7% of the total of 1.5 litres of wine in the bottle, we get that the amount of alcohol present must be = x rate = (1.5 litres)(0.117) = 0.1755 litres Notice that we carried units along where appropriate (the quantity here was a number of litres of wine, and hence the we calculated carries with it units of litres). But the question asked for the answer as millilitres of alcohol, so we must do a unit conversion here: David W. Sabo (2003), Base, and Rate Page 4 of 5

1000 millilitres = 0.1755 litres = 175.5 millilitres 1litre Thus, this bottle of wine contains 175.5 millilitres of alcohol. NOTE: A method for carrying out unit conversions correctly and reliably is described in detail in other documents on this site. If you haven t studied that method, you can still easily calculate the answer above because if involves a very simple unit conversion. If then 1 litre = 1000 millilitres (by definition) 0.1755 litres = 0.1755 x 1000 millilitres = 175.5 millilitres This rather informal approach will do here for more involved unit conversions you ll definitely want to use the more systematic method described in the documents on unit conversion elsewhere in these notes. David W. Sabo (2003), Base, and Rate Page 5 of 5