Uses of Percentage: Definition, Formulas, Methods

Use of Percentage: A percentage is a number or a ratio stated as a fraction of 100 in mathematics. A percentage is calculated by dividing a number by the whole and multiplying it by 100. As a result, % can be defined as a part per hundred. It is represented by the symbol percent. In the classroom, students in secondary schools are taught how to compute percentages.

We use percentages in all spares of our lives. From calculating exam results to salary increments, uses of percentage can be found everywhere. The most basic use of percentages is to compare one quantity against another, with the second quantity rebased to 100. Now, we’ll see how percentages can be applied in real-life situations. In this article, first, we shall learn about use of percentage formula, use of percentage as fraction, etc.

Meaning of Percentage

Per stands for “out of,” while cent is for “hundred.” As a result, percent denotes the quantity out of one hundredth.
The word percentage comes from the Latin phrase “per centum,” which means “by hundred.” Percentages have a denominator of \(100\), and they can be expressed in fractions. In other words, it’s a relationship between a component and the whole, with the whole always set to \(100\).
Example: Let’s assume we want to know what percentage of women are employed in the total workforce. If this percentage is \(50\%\), which is \(\frac{1}{2}\), when expressed in a fraction, it signifies that one out of every two people hired is a woman.

Learn How to Calculate Percentage

Use of Percentage as Fraction

Let’s look at how to use the \(%\) formula to calculate or determine the percentage.
To find the percent of a number, divide the part of the value or the actual value by the total value or the whole and then multiply by \(100\).
\({\text{Percentage}} = \frac{{{\text{actual}\;\text{value}}}}{{{\text{total}\;\text{value}}}} \times 100\%\)
\(P = \frac{M}{N} \times 100\%\)
where,
\(P→\) Percentage
\(M→\) Actual value
\(N→\) Total Value

Method of Finding Percentage

Example: Calculate the percentage marks secured by Shivu in a board exam, where Shivu has secured \(870\) marks out of \(1000\) marks.
The percentage secured by Shivu can be calculated as,
\(\frac{{870}}{{1000}} \times 100\% = 87\% \)

Use of Percentage Formula

Before we calculate the percentage, we must first understand the components of the percentage. Every percentage problem has three sections or variables, which makes it easier to solve. They are as follows:
1. Percentage
2. Part
3. Whole
Example: \(15\%\) of \(200\) is \(30\).
\( \Rightarrow 15\% \) of \(200 = 30\)
\( \Rightarrow 15\% \times 200 = 30\)
\( \Rightarrow \frac{{15}}{{100}} \times 200 = 30\)
In the above example,
Percentage \(→15\%\)
Part \(→30\)
Whole \(→200\)

Percentage Change

The percentage change from the previous value is either an increase or a decrease. There is a percentage increase if the new value is greater than the previous value. There is a percentage decrease if the new value is less than the initial value. Percentage change is calculated using the following formulas.
The percentage increase formula is given by:
Percentage increase \( = \frac{{{\text{amount}\;\text{of}\;\text{increase}}}}{{{\text{original}\,\text{amount}\;\text{or}\,\text{base}}}} \times 100\), where amount of increase \(=\text{new}\,\text{value} – \text{original}\,\text{value}\).
The percentage decrease formula is given by:
Percentage decrease \( = \frac{{{\text{amount}}\;{\text{of}}\,{\text{decrease}}}}{{{\text{original}\;\text{amount}\,\text{or}\,\text{base}}}} \times 100\), where amount change \( = {\text{original}\,\text{value}} – {\text{new}\;\text{value}}\)

Examples of Use of Percentage

Few examples of uses of percentages are listed below:

1. The percentage is used to determine “how much” or “how many.” A percentage number aids in calculating the exact amount or figure that is being discussed.
2. Fractions are compared.
3. Identifying a percentage increase or decrease
4. Helps in finding profit and loss percentages.

Use of Percentage With Diagram

1. The most fundamental use of percentages is to compare two quantities.
2. When reviewing or comparing results and progress, percentages are helpful.
3. In our daily lives, percentages play a critical role. A percentage is a helpful tool for comparing and contrasting different topics. The issue could be related to health, geography, or something else entirely.
4. Extensive data can be evaluated in less time and with more accuracy using percentages.
5. When it comes to elections, percentages are used to express votes cast for different candidates.
6. The most common application of \(%\) is in the business world. An example might be a profit or loss.
7. The percentage is highly beneficial to the government in making reservations and various initiatives for many individuals.
8. The percentage is a very effective medium for representing numerical data in the simplest way possible. 
9. Percentage provides information about the increase of civilization, urbanization, and production in any business.

Importance of Use of Percentage

1. Percentages are extensively used in a variety of contexts. Discounts in stores, bank interest rates, inflation rates, and numerous media data are expressed as percentages. Percentages are essential for comprehending the financial aspects of daily living.
2. Using percentages to express changes in observable factors like sales, losses, market share, and take rate is a simple approach to convey changes to non-mathematically oriented people.
3. To calculate and use a percentage, you will need to do some basic arithmetic. You’ll also need at least two numerical values representing the same thing, such as the total number of units sold in the first and second years.

Solved Examples on Use of Percentage in Calculator

Take a look at some of the solved examples to understand the topic better:

Q.1: Madhu saves \(\rm{Rs}\,500\) from her salary. Suppose this is \(10\%\) of her salary. What is her salary?
Ans: Let us consider Madhu’s salary as \(x.\)
From the given information, \(10\%\) of \(x = 500\)
Then, \(\frac{{10}}{{100}} \times x = 500\)
\( \Rightarrow \frac{1}{{10}} \times x = 500\)
\( \Rightarrow x = 500 \times 10\)
\( \Rightarrow x = 5000\)
Therefore, Madhu’s salary was \(\rm{Rs}\,5000.\)

Q.2: A survey of \(60\) children showed that \(25\%\) liked playing cricket. How many children liked playing cricket?
Ans:  From the given information, we get, the total number of students \(=60\),  cricket playing students \(=25\%\)
\(25\%\) of \(60 = \frac{{25}}{{100}} \times 60\)
\(\Rightarrow 25\%\) of \(60 = 15\)
Therefore, \(15\) children out of \(60\) like playing cricket.

Q.3: Arun bought a car for \(\rm{Rs}\,4,50,000\) The following year, the price went upto \(\rm{Rs}\,4,95,000\). What was the percentage of the price increase?
Ans: From the given initial value \(=\rm{Rs}\,4,50,000\), New value \(=\rm{Rs}\,4,95,000\)
Increased price \(= 4,95,000 – 4,50,000 = 45000\)
The formula to find the percentage increase is given by:
Percentage increase \( = \frac{{{\text{increased}\;\text{price}}}}{{{\text{the}\;\text{original}\;\text{price}}}} \times 100 = \frac{{45000}}{{450000}} \times 100\)
Percentage increase \(=10\%\)
Therefore, \(10\%\) is the increased percentage of the car price.

Q.4: A person says that in the year \(2020\), it snowed \(61\) days. What is the percentage of days of that year during which it snowed?
Ans: We know that there are \(366\) days in the year \(2020\) ( The year \(2020\) is a leap year). It showed \(61\) days in \(2020\).
\({\text{Percentage}} = \frac{{{\text{actual}\;\text{snowed}\;\text{days}}}}{{{\text{total}\;\text{number}\,\text{of}\,\text{days}\,\text{in}\,\text{a}\,\text{year}}}} \times 100\% \)
\( = \frac{{61}}{{366}} \times 100\% \)
\( = \frac{{1}}{{6}} \times 100\% \)
\(= 16.67\%\)
Therefore, it snowed \(16.67 \%\) of days in the year \(2020\) was snowed.

Q.5: The population of the city decreased from \(60,000\) to \(45,000\) due to the pandemic situation. Find the percentage decrease.
Ans: From the given information, we get, initial population \(= 60,000\), new population \(= 45,000\)
Decreased population \(= 60,000 – 45,000 = 15000\)
The formula to find the percentage decrease is given by:
Percentage decrease \( = \frac{{{\text{decreased}\;\text{population}}}}{{{\text{the}\;\text{original}\,\text{population}}}} \times 100\)
Percentage decrease \( = \frac{{15000}}{{60000}} \times 100\)
\(= 25\%\)
Therefore, population of the city is decreased by \( 25\%.\)

Summary of Percentages

The term “percentage” refers to the number of parts per hundred. The most basic use of percentages is to compare two quantities. In this article, we discussed the basics related to percentages that include the definitions of percentages, formulas, uses, importance, problems based on it. Then, we discussed the various uses of percentages. This article helps in better understanding the topic “percentage”, especially its various uses and applications in detail.

FAQs on Use of Percentage

Some of the frequently asked questions on use of percentage are mentioned below:

Q.1: What is the percentage?
Ans: Per stands for “out of,” while cent is for “hundred.” As a result, per cent denotes one-hundredth of a per cent.
The word percentage comes from the Latin phrase “per centum,” which means “by hundred.” Percentages have a denominator of \(100\) and can be expressed as fractions and decimals also.

Q.2: What are the uses of percentages in daily life?
Ans: Some of the uses of percentages in daily life are listed below.
1. The most fundamental use of percentages is to compare two quantities.
2. In our daily lives, percentages play a critical role. A percentage is a helpful tool for comparing and contrasting different topics. The issue could be related to health, geography, or something else entirely.
3. Extensive data can be evaluated in less time and with more accuracy using percentages.
4. When it comes to elections, percentages are used to express votes cast for different candidates.

Q.3: How do you do percentage in math?
Ans: A percentage is a value or ratio expressed as a fraction of \(100\) in mathematics. If we need to calculate a percentage of a number, we divide it by \(100\) and multiply it by the whole value. As a result, the percentage denotes a fraction of a per cent. Per cent denotes one-hundredth of a per cent.

Q.4: What are percentages and examples?
Ans: The percentage is the origin of the word per cent. As a result, if you split the term per cent in half, you’ll get Per and Cent. The word cent comes from an old European word that means “hundred.”
Examples: Reena gets \(20\%\) on every book sold by her.
By \(20\%\), we mean \(20\) parts out of \(100\), or we write it as \(\frac{20}{100}\). It means Reena is getting \(\rm{Rs}\,20\) out of every \(\rm{Rs}\,100\).

Q.5: What is the percentage formula?
Ans: To find the per cent of a number, divide it by total and multiply it by \(100\).
\({\text{Percentage}} = \frac{{{\text{actual}\,\text{value}}}}{{{\text{total}\; \text{value}}}} \times 100\%\)

Q.6: Why do we need percentages?
Ans: Percentage is one of the most widely used statistics in mathematics, science, commerce and in most of the dimensions of our life. They can be beneficial for evaluating a difference relative to a benchmark or initial value and being particularly valuable when making comparisons.

Learn Everything About Percentage

We hope this detailed article on the uses of percentage helps you in your preparation. If you get stuck do let us know in the comments section below and we will get back to you at the earliest.