Tax, tip, discount, markup, and simple interest — percentages at work in real life.
Percent means "per hundred." Real-world problems — sales tax, restaurant tips, store discounts, price markups, and bank interest — all require converting a percent to a decimal and applying it to a base amount.
A jacket costs $80. It is 25% off, then 8% sales tax is applied. Step 1 — Discount: $80 × 0.25 = $20 off → $80 − $20 = $60 Step 2 — Tax: $60 × 0.08 = $4.80 Final price: $60 + $4.80 = $64.80
You deposit $500 at 4% annual interest for 3 years. I = 500 × 0.04 × 3 = $60 Total = $500 + $60 = $560
General approach to percent problems:
Remember This!
A quick mental math trick: 10% of any number is just moving the decimal one place left. Then scale up or down (e.g., 15% = 10% + 5%, and 5% = half of 10%).
A restaurant bill is $45. You want to leave an 18% tip. How much is the tip?