Before we dive right into the formula of percentage, let us first know what is Percentage?
The literal meaning of ‘Percentage’ means the ‘share of something’. The percentage represents the amount or the share in terms of the numerical 100. ‘Per’ ‘cent’ means ‘per’ ‘hundred’ mathematically. This simplifying of the word ‘Percent’ denotes what is the share per hundred? Also, there is a sign of percentage which is illustrated as – %. This sign is used to express any amount or number between zero and one, in the percentage formula. This percentage represents the number which is in the fraction from out of 100. The percentage is used generally to compare the results of other data which is also in the percentage form.
What is the Formula to Calculate Percentage?
Previously, we have known what a Percentage is, in this section now we are going to illustrate the formula which is the primary concern of this content.
The Percentage Formula is as follows:
Percentage = Value / Total Value X 100
Percentage in Fraction and Ratio Form
We use the percentage to express any result in terms of 100. Like – If Meena scored 70% in the language test, then this means she has scored 70 out of 100. Also, this can be written as 70/100, this is written in terms of fraction while the same can be written in the ratio form – 70:100.
How Do You Calculate Percentage Form?
As known, we calculate the percentage to find a respective share or part out of a chuck which is in the form of 100. There are ideally two ways to find a percentage form. The ways to find the percentage form are:
- Usage of the Unitary method
- Changing the denominator in a fraction to 100.
Students should note this, in the exam if the denominator of the fraction is not a factor of 100 then the second method is to be avoided.
Lay Out the Simple Interest Formula
Before we know the simple interest formula, we are required to understand what it is and how it is calculated. Simple Interest is a way of how calculating the amount of the interest amount which is being charged on the same sum, this is being given at the same rate and for the same time period. In this method, the principal amount is always the same in this case. While in the case of compound interest we add the interest of the previous years as well in order to calculate the interest of the following year.
Simple Interest Formula
What will be the formula for Simple Interest or S.I? This is the importance of the SI chapter. All the sums are based on this formula. SO, the formula for S.I is –
S.I = P X R X T
In this formula,
- P is the principal
- R is the rate of interest
- T is the time that is calculated over the years. In this case, the rate of interest is in the % form.
Now, let us understand the different terminologies individually.
- Principal – This is the principle that means the amount that is initially borrowed from the financial institution or bank, which we actually invest in. This principle amount is denoted by the letter ‘P’.
- Rate – This is the rate of interest which is the amount that is given to a particular someone for a definite reason. The rate of interest can be 5%, 6%, and so on. This rate of interest is denoted by the letter ‘R’.
- Time – Time is denoted by ‘T’ which is the time span for the principal amount being loaned to someone else.
- Amount – this is the sum of money that is being added to the borrowed sum with the interest.
So, Amount = Principal + Simple Interest.
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