5-Percentage, Base, and Ratio

Business Math
Percent, Base and Rate
1
Solving percentage problems
 Identify the rate, base and percentage in

percentage problems.
 Use the percentage formula to find the unknown
value when two values are known.
P=RxB
2
Cleaves/Hobbs: Business Math, 7e Copyright 2005 by Pearson Education, Inc. Upper Saddle River, NJ 07458 All Rights Reserved
Identify the rate, base and percentage
in percentage problems.
 In the formula P = R x B:
 “B” refers to the base which is the original
number or one entire quantity.
 “P” refers to percentage and represents a
portion of the base
 “R” refers to rate and is a percent that tells us
how the base and percentage are related.
3
Find the percentage.
 The original formula is P = R x B
 To find the percentage, we multiply the rate by
the base.
 If 80 people registered for this course and 20%
are Spanish-speaking, what number of students
are Spanish-speaking?
 Identify the base; identify the rate.
 Use the solution plan to find the answer.
4
Find the percentage.
1. What are you looking for?
The number of Spanish-speaking students
2. What do you know?

The base is 80 (rate); and the rate is 20% or 0.20.
3. Solution plan
P = 80 x 20% (or .2)
4. Solve
P = 16
5. Conclude
16 students are Spanish-speaking
5
Try these problems.
 If 40% of the registered voters in a community of

5,600 are Democrats, how many voters are
Democrats?
 2,240
 If 58% of the office workers prefer diet soda and

there are 600 workers, how many prefer diet
soda?
 348
6
Find the base.
 Refer to the original formula: P = R x B.
 To find “B,” we can change the formula so that it
becomes: B = P/R
 To find the original number, we can divide the
percentage by the rate.
 Example: Forty percent, or 90 diners preferred
outdoor seating at the new restaurant. How
many diners were interviewed in all?
 Use the solution plan.
7
Find the base.
The total number of diners surveyed.

The percentage (90) and the rate (40%).
3. Solution plan
Base = P/R; Base = 90/.40
4. Solve
B = 225
5. Conclude
225 diners were interviewed in all.
8
Try these examples.
 1700 dentists attending a convention last month
prefer fluoride treatments for preschoolers.
That’s 4 out of every 5 dentists. How many
dentists attended in all?
 2,125
 80%, or 560, of our current clients take

advantage of our cash discount program for
prompt payment. What is our current client
base?
 700
9
Find the rate.
 Refer to the original formula: P = R x B.
 To find “R,” we can change the formula so that it
becomes: R = P/B
 To find the rate, we can divide the percentage
by the base.
 Example: 55 insurance agents were able to
meet with their clients to inform them of policy
changes. If there are 220 agents in all, what
percent does this represent?
10
Use the solution plan.
The percent or rate of agents who talked to their clients.

The base or total number of agents and the percentage who
talked to their clients.
3. Solution plan
R = P/B ; R = 55/220
4. Solve
R= .25
5. Conclusion
25% of the agents talked to their clients.
11
Try these examples.
 The plant foreperson reported that 873 of the

900 items tested met the quality control
specifications for production. What is the rate of
acceptable items?
 97%
 In the new product focus group, 6,700 of the

8,375 customers rated the product as “very
good” or “superior.” What was the rate?
 80%
12
Identify what is missing.
 Sometimes, you will be asked to find one of the
elements: rate, base or percentage when you
know the other two.
 Learn to “read” the problem to identify the
missing element.
 Example: 30% of 70 is what number?
 30% is the rate.
 70 is the base.
 You are looking for “P” or percentage.
 P=RxB P = 0.3 x 70 = 21
13
Try these problems.
 Identify what’s missing and then solve the
problem using the correct formula.
 60 is what percent of 80?
 R = P/B R = 75%
 35% of 350 is what?
 P=RxB P = 0.35 x 350 = 122.5
 25% of what number is 125?
 B = P/R B = 125/.25 = 500
14
Increases and Decreases
 Find the amount of increase or decrease in

percent problems.
 Find the new amount directly in percent
problems.
 Find the rate or the base in increase or decrease
problems.
15
Find the amount of increase or
decrease in percent problems.
 Examples of increases in business applications
include:
 Sales tax
 Raise in salary
 Markup on a wholesale price
16
Decreases in percent problems
 Some examples of decreases include:

 Payroll deductions
 Markdowns
 Discounts on sale items
17
How to find
the amount of increase
 To find the amount of increase:
amount of increase = new amt – beg. amt.
Example: Joe’s salary has been Php 400 a

week. Beginning next month, it will be Php 450 a
week. The amount of increase is Php 50 a week.
18
How to find
the amount of decrease
 To find the amount of decrease:
Amount of decrease = beg. amt - new amt.
 Example: Roxanne’s new purse originally cost

Php 60, but it was on sale when she bought it on
Saturday for Php 39.99. The amount of
decrease (or markdown) is Php 20.01.
19
Percent of change
 The amount of change is a percent of the
original or beginning amount.
 Find the amount (increase or decrease) from a
percent of change by:
 Identifying the original or beginning amount
and the percent or rate of change.
 Multiplying the decimal equivalent of the rate
of change by the original or beginning
amount.
20
Here’s an example
 Your company has announced a 1.5% cost of

living raise for all employees next month. Your
monthly salary is currently Php 2,300. Starting
next month, what will your new salary be?
 You will need to find the amount of increase by
multiplying the rate by the base.
 To find the new amount, add the amount of
increase to the original amount.
21
Find the new amount.
 Current salary = Php 2,300 a month

 Rate of change = 1.5%
 Amount of raise =
Percent of change x original amount
.015 x Php 2,300 = Php 34.50 a month
 Add Php 34.50 to the original amount of
Php 2,300 to identify the new amount.
 New amount = Php 2,334.50
22
Find the new amount directly in
percent problems.
 Often in increase or decrease problems, we are
more interested in the new amount than the
amount of change.
 Find the new amount by adding or subtracting
percents first.
 The original or beginning amount is always
considered to be the base and is 100% of
itself.
23
Find the new amount directly in
a percent problem.
 Find the rate of the new amount.
 For increase: 100% + rate of increase
 For decrease: 100% - rate of decrease
 Find the new amount.
P =RxB
 New amount = rate of new amt. x original amt.
24
Here’s an example.
 Medical assistants are to receive a 9% increase
in wages per hour. If they were making Php
15.25, what is the new per hour salary to the
nearest peso?
 Rate of new amount = 100% + rate of increase
 = 100% + 9% = 109%
 Rate of new amount = Php 15.25 x 109%
 Change 109% to its decimal equivalent: 1.09
 Php 15.25 x 1.09 = Php 16.6225 = Php 17.00
25
Here’s another example.
A new pair of jeans that costs Php 49.99 is
advertised at 70% off. What is the sale price to
the nearest peso of the jeans?
 Rate of new amount = 100% - rate of decrease
 = 100% - 70% = 30%
 New amount = rate of new amt. x original amt.
 New amount = 30% x Php 49.99
 New amount = 0.3 x Php 49.99 = Php 14.997
 New amount = Php 15.00 (nearest peso)
26
Try these examples.
 The property taxes at your business office will go
up 5% next year. Currently, you pay Php 3,400.
How much will you pay next year?
 Php 3,570
 A wholesaler is offering you a 20% discount if you

purchase new inventory before the 15th of the
month. If your normal invoice is Php 3,600, how
much would you pay if you got the discount?
 Php 2,880
27
6.3.3 Find the rate or the base in
increase or decrease problems.
 Identify or find the amount of increase or
decrease.
 To find the rate of increase or decrease, use the
percentage formula: R = P/B.
 Rate = amount of change/original amount.
 To find the base or original amount, use the
percentage formula: B = P/R.
 Base = amount of change/rate of change.
28
Here’s an example.
 During the month of May, a graphic artist made a

profit of Php 1,525. In June, she made a profit
of Php 1,708. What is the percent of increase in
profit?
 Use the solution plan to figure out the answer.
29
Solution plan
 What are you looking for?
 Percent of increase in profits.
 What do you know?

 Original amt. = Php 1,525; New amt.=Php 1,708
 Solution plan
 Find amt. of increase; Find percent of increase.
 Solution
 Php 1,708- Php 1,525 = Php183
Php 183 / Php 1,525 = 0.12 =12%
 Conclusion
 The rate of increase in profit is 12%.
30
Try these two examples.
 A popular detergent cost Php 5.99 last

Saturday, but today the same detergent costs
Php 7.50. What is the rate of increase?
 25.2%
 Sales in the East Region were Php 10,800 in

January and dropped to Php 9,700 in February.
What is the rate of decrease from January to
February?
 10.2%
31

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Business Math

Percent, Base and Rate

 Identify the rate, base and percentage in

2. What do you know?

 If 40% of the registered voters in a community of

 If 58% of the office workers prefer diet soda and

2. What do you know?

 80%, or 560, of our current clients take

2. What do you know?

 The plant foreperson reported that 873 of the

 In the new product focus group, 6,700 of the

 Find the amount of increase or decrease in

 Some examples of decreases include:

 Discounts on sale items

Example: Joe’s salary has been Php 400 a

 Example: Roxanne’s new purse originally cost

 Your company has announced a 1.5% cost of

 Current salary = Php 2,300 a month

 A wholesaler is offering you a 20% discount if you

 During the month of May, a graphic artist made a

 Use the solution plan to figure out the answer.

 What do you know?

 A popular detergent cost Php 5.99 last

 Sales in the East Region were Php 10,800 in

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