2. Copyright © 2011 Pearson Education, Inc. Numbers in the Real World

3. Copyright © 2011 Pearson Education, Inc. Slide 3-3 Unit 3A Uses and Abuses of Percentages

4. Calculating Percents The key to calculating percents, in my opinion is to understand the words percent, is and of. Percent means for each 100. So the key is the following: Copyright © 2011 Pearson Education, Inc. Slide 3-4

5. Example 1 Copyright © 2011 Pearson Education, Inc. Slide 3-5 29 is what % of 62? Is = 29, of = 62, % = ? x = 46.774%

6. Example 2 What is 48% of 1300? Copyright © 2011 Pearson Education, Inc. Slide 3-6 Is = x, of = 1300, % = 48 x = 624

7. Example 3 350 is 180% of what? Copyright © 2011 Pearson Education, Inc. Slide 3-7 Is = 350, of = x, % = 180 x = 194.44

8. 3-A Copyright © 2011 Pearson Education, Inc. Slide 3-8 As fractions: 15% of the of the 850 students in a school were absent. To describe change: The price of a stock increased 75% from $50 per share. For comparisons: A Mercedes costs 25% more than a Lexus. Three Ways of Using Percentages

9. 3-A Copyright © 2011 Pearson Education, Inc. Slide 3-9 The absolute change describes the actual increase or decrease from a reference value (starting number) to a new value: absolute change = new value – reference value The relative change is a fraction that describes the size of the absolute change in comparison to the reference value: Absolute and Relative Change

10. 3-A Copyright © 2011 Pearson Education, Inc. Slide 3-10 Example: A diversified portfolio grows from $1,500 to $2,250. absolute change= new value – reference value = $2,250 – $1,500 = $750 = $750 / $1,500 = 0.5 = 50% relative change= Absolute vs. Relative Change

11. 3-A Copyright © 2011 Pearson Education, Inc. Slide 3-11 The absolute difference is the actual difference between the compared value and the reference value: absolute difference = compared value – reference value The relative difference describes the size of the absolute difference as a fraction of the reference value: Absolute and Relative Difference

12. 3-A Copyright © 2011 Pearson Education, Inc. Slide 3-12 If the compared value is P% more than the reference value, it is (100 + P)% of the reference value. If the compared value is P% less than the reference value, it is (100 – P)% of the reference value. Of versus More Than (or Less Than)

13. 3-A Copyright © 2011 Pearson Education, Inc. Slide 3-13 Percentages of Percentages Example: If a bank increases its interest rate from 4% to 5%, the interest rate increased by 1 percentage point. When a change or difference is expressed in percentage points, assume it is an absolute change or difference. with the % sign or the word percent, it is a relative change or difference.

14. 3-A Copyright © 2011 Pearson Education, Inc. Slide 3-14 Solving Percentage Problems If the compared value is P% more than the reference value, then and If the compared value is less than the reference value, use (100 – P) instead of (100 + P) in the above calculations.

15. 3-A Copyright © 2011 Pearson Education, Inc. Slide 3-15 You purchase a shirt with a labeled (pre-tax) price of $21. The local sales tax rate is 6%. What is your final cost (including tax)? final cost = labeled price + (6% of labeled price) = (100 + 6)% x labeled price = 106% x $21 = 1.06 x $21 = $22.26 Solving Percentage Problems

16. 3-A Copyright © 2011 Pearson Education, Inc. Slide 3-16 Abuses of Percentages Beware of Shifting Reference Values A 10% pay cut is followed by a 10% pay raise. Less than Nothing Decrease caloric intake by 150% to lose weight. Don’t Average Percentages If 70% of the boys and 60% of the girls in a class voted to go to a water park, then 65% of the students in the class voted to go to the water park.

17. 3-A In-Class Group Assignment P. 141–143 18 – 96 multiples of 3 Copyright © 2011 Pearson Education, Inc. Slide 3-17