Here are some real-life examples of uses of percentages.
- if you buy something and sell it, the difference between the two price is a profit or a loss. It is given as a percentage of the buying price. If you buy something for $20 and sell it for $15 you make a loss of $5 or 25%
- When you buy something you may be offered a discount. This is a reduction in the price. It is usually given as a percentage. If the price is normally $20 and you get a 10% discount, you only pay $18.
- If a bank helps you to buy an item, you may have to pay back more than you borrow. This is the interest that the bank charges. It is given as a percentage of the cost. If a car costs $20 000 and the rate of interest is 3%, you will pay $20 600.
- If you buy something the price may include a tax.This is called a purchase tax. When you earn money you may have to pay tax on what you earn. This is called income tax.
Work this out:
- A women bought a old chair for $240. She sold it for $300. Work our the percentage profit.
- A bottle of grape juice costs $6.50. If you buy six bottles you can get 10% discount. Work out how much you save if you buy six bottles.
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