Page 45 - CalcBus_Flipbook

CH 4] Calculating Business 4-9

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Example C: Calculate 66 / 3 % of $360.

Solution:
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First convert 66 / 3 % to a decimal fraction.

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66 / 3 % ÷ 100% = 0.6667 This number was rounded to seven.

Next multiply the decimal fraction, 0.6667 by the $360 to yield the value.

$360 x 0.6667 = $240.01 Rounding rules apply

Percent More Than. To determine a percent, such as 12%, more than a given number
means to increase the base by the additional percentage. For example, 12% more than a
number means ( 100 % + 12 % =) 112% of that number.

Example: Calculate 12% more than 350.

Solution:
First calculate (100% + 12%) = 112% then convert to a decimal; 112%/100% = 1.12

Then multiply the decimal fraction by the base (350)

1.12 x 350 = 392

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Percent Less Than. To determine a percent, say 8 / 2 %, less than a given number means
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to decrease the base by the percentage. Deduct the given rate (8 / 2 %) from 100% and
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use the result as the rate times the base. For example, 8 / 2 % less than a number means
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100% — 8 / 2 %, or 91 / 2 %, of that number. 4

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Example: Calculate 8 / 2 %, less than $49.75.

Solution:
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First calculate (100% - 8 / 2 %) = 91 / 2 % then convert to a decimal;
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91 / 2 %/100% = 0.915

Then multiply the decimal fraction by the base ($49.75)

0.915 x $49.75 = $45.52 Rounding rules apply
Algorithm: An
Solving Word problems. Word problems tell a story and indicate arithmetic operations, algorithm is a step by
such as addition, subtraction, multiplication and division. The solutions require you to set step method of solving
up the problem arithmetically to arrive at the correct answer; it is best to determine what a problem. It is
commonly used for
answer you are looking for and then set up the algorithm to help you reach that end. data processing,
calculation and other
Example A: Fashion Flowers increases its advertising expenditures 25% each year. If related computer and
the advertising expenses during the first (base) year amounted to $3,400, mathematical
how much would be their advertising expenses for the fourth year? operations.

Solution: The fourth year increase in advertising expense when you begin with $3,400
advertising cost and it increases 25% each of four years.

End of year Percent Dollar Next Years
Advertising increase as Amount for Advertising
Expense Decimal Increase Expense

1 $3,400.00 x 0.25 $850.00 ($3,400.00 + $850.00 =) $4,250.00
2 $4,250.00 x 0.25 $1,062.50 ($4,250.00 + $1,062 =) $5,312.50
3 $5,312.50 x 0.25 $1,328.13 ($5,312.50 + $1,328.13 =) $6,640.63
4 $6,640.63 x 0.25 $1,660.16

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