Introduction to Percentage
Percentage means a number expressed out of 100. It is widely used in daily life such as profit and loss, discount, commission, tax, savings, population, and statistics.
Basic Percentage Formulae
Percentage = (Part / Whole) × 100
Value = Percentage × Whole / 100
Formula Table
Percentage = (Part ÷ Whole) × 100
Part = (Percentage × Whole) ÷ 100
Whole = (Part × 100) ÷ Percentage
Profit = Selling Price − Cost Price
Loss = Cost Price − Selling Price
Profit % = (Profit ÷ Cost Price) × 100
Loss % = (Loss ÷ Cost Price) × 100
Commission = (Commission % × Selling Price) ÷ 100
Price after Commission = Selling Price − Commission
Discount = (Discount % × Marked Price) ÷ 100
Selling Price after Discount = Marked Price − Discount
Tax = (Tax % × Taxable Amount) ÷ 100
VAT = (VAT % × Price after Discount) ÷ 100
Total Dividend = (Dividend % × Total Profit) ÷ 100
Dividend per Share = Total Dividend ÷ Total Shares
Individual Dividend = Dividend per Share × Number of Shares
Percentage = (Part / Whole) × 100
Value = Percentage × Whole / 100
Commission
Commission is the amount paid to an agent for selling or buying goods or property. It is usually calculated as a certain percent of the selling price.
Formulae of Commission
Amount of commission = (Commission % × Selling Price) / 100
Price after commission = Selling Price − Commission
Commission % = (Commission / Selling Price) × 100
Discount
Discount is the reduction in marked price given by a seller to attract customers. Discount is usually given as a percentage of the marked price.
Formulae of Discount
Discount amount = (Discount % × Marked Price) / 100
Selling Price = Marked Price − Discount amount
Discount % = (Discount amount / Marked Price) × 100
Tax
Tax is the amount collected by the government from citizens to manage public services such as education, health, and administration. Tax can be direct or indirect.
Types of Tax
Direct Tax: Income tax, land tax, property tax
Indirect Tax: VAT, customs duty, entertainment tax
Income Tax
Income tax is charged on annual income above the tax-free limit fixed by the government. Different tax slabs apply for single and married persons.
Tax Calculation Formula
Tax = (Taxable Income × Tax Rate) / 100
Value Added Tax (VAT)
VAT is charged on goods and services after discount.
VAT amount = (VAT % × Price after discount) / 100
Dividend
Dividend is the part of profit distributed to shareholders of a company or cooperative.
Formulae of Dividend
Total Dividend = Dividend % × Total Profit / 100
Dividend per Share = Total Dividend / Total Number of Shares
Individual Dividend = Dividend per Share × Number of Shares Owned
Chapter Review
This chapter explains the practical use of percentage in daily life. It covers calculation of profit and loss, commission paid to agents, discount offered by sellers, different types of taxes including VAT and income tax, and dividend distributed to shareholders. By applying percentage formulas correctly, real-life financial problems can be solved easily and accurately. Understanding these concepts helps students become financially aware and confident in handling business-related calculations.
1.Find 13% of Rs. 12,000
Step 1: Use the formula: Percentage × Whole / 100
Step 2: 13 × 12,000 ÷ 100 = 1,56,000 ÷ 100
Step 3: Result = Rs. 1,560
2.What percent is Rs. 400 of Rs. 20,000?
Step 1: Use the formula: (Part ÷ Whole) × 100
Step 2: (400 ÷ 20,000) × 100 = 0.02 × 100
Step 3: Result = 2%
3.Find the selling price after 10% discount on Rs. 450
Step 1: Find discount amount = (10 × 450) ÷ 100 = 4,500 ÷ 100 = Rs. 45
Step 2: Selling Price = Marked Price − Discount = 450 − 45
Step 3: Result = Rs. 405
4. Find commission at 5% on Rs. 80,00,000
Step 1: Use the formula: (Commission % × Selling Price) ÷ 100
Step 2: (5 × 80,00,000) ÷ 100 = 4,00,00,000 ÷ 100
Step 3: Result = Rs. 4,00,000
5.Find VAT at 13% on Rs. 10,200
Step 1: Use the formula: (VAT % × Price) ÷ 100
Step 2: (13 × 10,200) ÷ 100 = 1,32,600 ÷ 100
Step 3: Result = Rs. 1,326
6. A staff earns Rs. 12,000 salary and Rs. 4,000 commission. Find total income
Step 1: Total income = Salary + Commission
Step 2: 12,000 + 4,000 = 16,000
Step 3: Result = Rs. 16,000
7. Find discount percent if MP = Rs. 500 and SP = Rs. 400
Step 1: Discount = Marked Price − Selling Price = 500 − 400 = 100
Step 2: Discount % = (Discount ÷ Marked Price) × 100 = (100 ÷ 500) × 100
Step 3: Result = 20%
8. Find tax on Rs. 2,50,000 at 1%
Step 1: Tax = (Tax Rate × Taxable Amount) ÷ 100
Step 2: (1 × 2,50,000) ÷ 100 = 2,50,000 ÷ 100
Step 3: Result = Rs. 2,500
9 Find dividend if profit = Rs. 6,00,000 and dividend rate = 10%
Step 1: Total Dividend = (Dividend % × Total Profit) ÷ 100
Step 2: (10 × 6,00,000) ÷ 100 = 60,00,000 ÷ 100
Step 3: Result = Rs. 60,000
10 A person owns 500 shares, dividend per share Rs. 20. Find total dividend
Step 1: Total Dividend = Number of Shares × Dividend per Share
Step 2: 500 × 20 = 10,000
Step 3: Result = Rs. 10,000
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