Context and scope
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THE WORLD OF NUMBERS
What Even Is a Number?
Before the practitioner could tackle that restaurant bill, she needed to go back to basics. Way back.
A number is simply a way to measure, count, or label something. That's it. It's humanity's oldest technology — older than the wheel, older than fire-making tools.
When a shepherd in ancient Mesopotamia needed to know if all his goats came home, he placed one pebble in a pouch for each goat that left in the morning. When they returned, he matched pebbles to goats. That was counting. That was the birth of numbers.
The Types of Numbers You'll Consider an engineering practitioner's your map of the number universe
| Type | What It Means | Examples |
|---|---|---|
| Natural Numbers | The counting numbers (no zero) | 1, 2, 3, 4, 5, ... |
| Whole Numbers | Natural numbers + zero | 0, 1, 2, 3, 4, ... |
| Integers | Whole numbers + negatives | ..., -3, -2, -1, 0, 1, 2, 3, ... |
| Rational Numbers | Any number expressible as a fraction | ½, 0.75, -3, 7, 0.333... |
| Irrational Numbers | Cannot be written as a simple fraction | π (3.14159...), √2 (1.41421...) |
| Real Numbers | All rational + irrational numbers | Everything on the number line |
Your takeaway: Every percentage, every fraction, every decimal you'll ever encounter in daily life is a rational number. Master rational numbers, and you master everyday math.
The Number Line — Your Secret Weapon
the practitioner's tutor, Mr. the practitioner, drew a single horizontal line on a whiteboard.
"This," he said, "is the most powerful picture in all of mathematics."
←---|----|----|----|----|----|----|----|----|----|----|----|----|---→
-6 -5 -4 -3 -2 -1 0 1 2 3 4 5 6
Everything has a place on this line. Every fraction, every decimal, every percentage (once converted) — they all sit somewhere on this line.
Key Properties of the Number Line
- Numbers increase as you move right.
- Numbers decrease as you move left.
- Zero is the dividing point between positive and negative.
- Between any two numbers, there are infinitely many other numbers. (This is where fractions and decimals live.)
the practitioner looked at the space between 0 and 1.
"There's... stuff in there?"
"Infinite stuff," Mr. the practitioner smiled. "That's where the magic begins."
Place Value — The Architecture of Every Number
Before we can manipulate numbers, you need to understand how they're built.
Every digit in a number has a place value — its position determines its worth.
Place Value Chart
| ... | Millions | Hundred Thousands | Ten Thousands | Thousands | Hundreds | Tens | Ones | . | Tenths | Hundredths | Thousandths |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ... | 1,000,000 | 100,000 | 10,000 | 1,000 | 100 | 10 | 1 | . | 0.1 | 0.01 | 0.001 |
Example: The number 3,847.56
| Digit | Place | Value |
|---|---|---|
| 3 | Thousands | 3,000 |
| 8 | Hundreds | 800 |
| 4 | Tens | 40 |
| 7 | Ones | 7 |
| 5 | Tenths | 0.5 |
| 6 | Hundredths | 0.06 |
Total: 3,000 + 800 + 40 + 7 + 0.5 + 0.06 = 3,847.56
Why this matters to you: When you understand place value, decimals stop being scary. The digit after the decimal point is just tenths, then hundredths, then thousandths. That's it. No mystery.
FRACTIONS — THE MISUNDERSTOOD HERO
What Is a Fraction, Really?
A fraction is nothing more than a division that hasn't been completed yet.
Numerator ← "How many parts you HAVE"
─────────────
Denominator ← "How many EQUAL parts the whole is divided into"
The Anatomy of a Fraction
¾ means:
- The whole has been divided into 4 equal parts
- You have 3 of those parts
That's it. No hidden complexity. No trick.
Visual Representation
Imagine a pizza cut into 4 equal slices:
┌─────────┐
│ ██ │ ██ │ ██ = Shaded (you have these)
│ ██ │ ██ │ ░░ = Unshaded (you don't)
├─────────┤
│ ██ │ ░░ │
│ ██ │ ░░ │
└─────────┘
3 out of 4 slices = ¾
Types of Fractions
the practitioner learned there are several kinds:
. Proper Fractions
The numerator is smaller than the denominator.
| Fraction | Meaning |
|---|---|
| ½ | 1 out of 2 parts |
| ¾ | 3 out of 4 parts |
| ⅝ | 5 out of 8 parts |
| 2/7 | 2 out of 7 parts |
Always less than 1 whole.
. Improper Fractions
The numerator is equal to or larger than the denominator.
| Fraction | Meaning |
|---|---|
| 5/4 | 5 out of 4 parts (more than 1 whole) |
| 7/3 | 7 out of 3 parts |
| 9/9 | 9 out of 9 parts (exactly 1 whole) |
| 12/5 | 12 out of 5 parts |
Equal to or greater than 1 whole.
. Mixed Numbers
A whole number combined with a proper fraction.
| Mixed Number | Meaning | Improper Fraction Equivalent |
|---|---|---|
| 1 ¼ | 1 whole and ¼ more | 5/4 |
| 2 ⅓ | 2 wholes and ⅓ more | 7/3 |
| 3 ⅘ | 3 wholes and ⅘ more | 19/5 |
Converting Between Mixed Numbers and Improper Fractions
Mixed → Improper:
Formula: (Whole × Denominator + Numerator) / Denominator
Example: Convert 3 ⅖ to an improper fraction
Step 1: Multiply whole number by denominator → 3 × 5 = 15
Step 2: Add the numerator → 15 + 2 = 17
Step 3: Place over the same denominator → 17/5
Result: 3 ⅖ = 17/5
Improper → Mixed:
Formula: Divide numerator by denominator. Quotient = whole number, remainder = new numerator.
Example: Convert 17/5 to a mixed number
Step 1: 17 ÷ 5 = 3 remainder 2
Step 2: Whole number = 3, Remainder = 2, Denominator stays = 5
Result: 17/5 = 3 ⅖
Equivalent Fractions — The Shape-Shifters
This was the practitioner's first "aha!" moment.
"Wait," she said. "½ and 2/4 and 3/6 and 50/100 are ALL the same thing?"
"Exactly," said Mr. the practitioner.
The Golden Rule of Equivalent Fractions
Whatever you do to the numerator, you must do to the denominator.
1 1 × 2 2 2 × 3 6 6 × 10 60
─── = ─────── = ─── = ─────── = ─── = ────────── = ────
2 2 × 2 4 4 × 3 12 12 × 10 120
All of these equal ½. They look different, but they represent the same amount.
Equivalent Fractions Table for Common Values
| Simplest Form | ×2 | ×3 | ×4 | ×5 | ×10 |
|---|---|---|---|---|---|
| ½ | 2/4 | 3/6 | 4/8 | 5/10 | 10/20 |
| ⅓ | 2/6 | 3/9 | 4/12 | 5/15 | 10/30 |
| ¼ | 2/8 | 3/12 | 4/16 | 5/20 | 10/40 |
| ⅕ | 2/10 | 3/15 | 4/20 | 5/25 | 10/50 |
| ⅙ | 2/12 | 3/18 | 4/24 | 5/30 | 10/60 |
Simplifying Fractions
The reverse skill — making fractions as small as possible.
Find the Greatest Common Factor (GCF) of numerator and denominator, then divide both by it.
Example: Simplify 18/24
Step 1: Factors of 18 → 1, 2, 3, 6, 9, 18
Step 2: Factors of 24 → 1, 2, 3, 4, 6, 8, 12, 24
Step 3: GCF = 6
Step 4: 18 ÷ 6 = 3, 24 ÷ 6 = 4
Result: 18/24 = ¾
Quick GCF Reference Table
| Number Pair | GCF | Simplified |
|---|---|---|
| 4/8 | 4 | ½ |
| 6/9 | 3 | ⅔ |
| 10/25 | 5 | ⅖ |
| 12/16 | 4 | ¾ |
| 15/45 | 15 | ⅓ |
| 20/100 | 20 | ⅕ |
| 36/48 | 12 | ¾ |
Comparing Fractions
the practitioner needed to know: Is ⅜ bigger or smaller than ⅖?
Method 1: Cross-Multiplication (Fast & Reliable)
Compare a/b and c/d by computing a × d vs. c × b
Example: Compare ⅜ and ⅖
3 × 5 = 15 vs. 2 × 8 = 16
15 < 16
Therefore: ⅜ < ⅖
Method 2: Common Denominator
Convert both to the same denominator, then compare numerators.
⅜ = 15/40 (multiply top and bottom by 5)
⅖ = 16/40 (multiply top and bottom by 8)
15/40 < 16/40
Therefore: ⅜ < ⅖ ✓
Method 3: Convert to Decimals
⅜ = 3 ÷ 8 = 0.375
⅖ = 2 ÷ 5 = 0.400
0.375 < 0.400
Therefore: ⅜ < ⅖ ✓
Common Fractions Ranked Smallest to Largest
1/10 < ⅛ < 1/7 < ⅙ < ⅕ < ¼ < 2/7 < ⅓ < ⅜ < ⅖ < 3/7 < ½ < 4/7 < ⅗ < ⅝ < ⅔ < 5/7 < ¾ < ⅘ < ⅚ < 7/8 < 9/10
Operations with Fractions
This is where the practitioner leveled up.
Addition of Fractions
Same Denominator (Easy):
a/c + b/c = (a + b)/c
2/7 + 3/7 = (2+3)/7 = 5/7
Different Denominators (Requires Common Denominator):
Step 1: Find the Least Common Denominator (LCD) Step 2: Convert each fraction Step 3: Add the numerators Step 4: Simplify if possible
Example: ⅔ + ¾
Step 1: LCD of 3 and 4 = 12
Step 2: ⅔ = 8/12 (multiply by 4/4)
¾ = 9/12 (multiply by 3/3)
Step 3: 8/12 + 9/12 = 17/12
Step 4: 17/12 = 1 5/12
Result: ⅔ + ¾ = 1 5/12
Subtraction of Fractions
Same process, but subtract.
Example: ⅚ - ⅜
Step 1: LCD of 6 and 8 = 24
Step 2: ⅚ = 20/24 (multiply by 4/4)
⅜ = 9/24 (multiply by 3/3)
Step 3: 20/24 - 9/24 = 11/24
Result: ⅚ - ⅜ = 11/24
Multiplication of Fractions
This one is surprisingly the easiest. Multiply straight across.
a/b × c/d = (a×c) / (b×d)
Example: ⅔ × ⅘
Numerators: 2 × 4 = 8
Denominators: 3 × 5 = 15
Result: ⅔ × ⅘ = 8/15
Pro tip: Simplify before multiplying to keep numbers small.
Example: 3/8 × 4/9
Cross-simplify first:
3 and 9 share factor 3 → simplify to 1 and 3
4 and 8 share factor 4 → simplify to 1 and 2
Now multiply: 1/2 × 1/3 = 1/6
Result: 3/8 × 4/9 = 1/6 (much easier than computing 12/72 and reducing!)
Division of Fractions
Keep, Change, Flip (KCF) — the most memorable rule in fraction math.
a/b ÷ c/d = a/b × d/c
Example: ¾ ÷ ⅝
Step 1: Keep the first fraction → ¾
Step 2: Change ÷ to ×
Step 3: Flip the second fraction → 8/5
¾ × 8/5 = 24/20 = 6/5 = 1 ⅕
Result: ¾ ÷ ⅝ = 1 ⅕
Complete Operations Summary Table
| Operation | Rule | Example | Result |
|---|---|---|---|
| Add (same denom) | a/c + b/c = (a+b)/c | 2/5 + 1/5 | 3/5 |
| Add (diff denom) | Find LCD, convert, add | ½ + ⅓ = 3/6 + 2/6 | 5/6 |
| Subtract (same) | a/c - b/c = (a-b)/c | 5/8 - 3/8 | 2/8 = ¼ |
| Subtract (diff) | Find LCD, convert, subtract | ¾ - ⅔ = 9/12 - 8/12 | 1/12 |
| Multiply | a/b × c/d = ac/bd | ⅔ × ¾ | 6/12 = ½ |
| Divide | a/b ÷ c/d = a/b × d/c | ½ ÷ ¼ = ½ × 4/1 | 4/2 = 2 |
the practitioner Solves the Budget Problem
Remember the practitioner's task? Allocate ⅓ to marketing, ¼ to development, rest to operations.
Watch her solve it:
Step 1: Add the known fractions
⅓ + ¼
Step 2: Find LCD of 3 and 4 = 12
⅓ = 4/12
¼ = 3/12
Step 3: Add
4/12 + 3/12 = 7/12
Step 4: Subtract from the whole (12/12)
12/12 - 7/12 = 5/12
Operations gets 5/12 of the budget.
If the total budget is 120,000 (in any currency):
| Department | Fraction | Calculation | Amount |
|---|---|---|---|
| Marketing | ⅓ | 120,000 × ⅓ | 40,000 |
| Development | ¼ | 120,000 × ¼ | 30,000 |
| Operations | 5/12 | 120,000 × 5/12 | 50,000 |
| Total | 12/12 | 120,000 |
the practitioner sent the email at 2:47 PM. Thirteen minutes to spare.
She smiled for the first time in years at a math problem.
DECIMALS — FRACTIONS IN DISGUISE
Technical challenge
Two weeks into her journey, the practitioner noticed something: decimals were stalking her.
- Her bank balance: 2,341.87
- The fuel price: 1.459 per liter
- Her fitness app: "You ran 5.3 km today!"
- The weather: "Temperature: 22.5°C"
"Are these... fractions?" she asked Mr. the practitioner.
"Every single one of them," he said.
Understanding Decimals
A decimal is simply a fraction whose denominator is a power of 10.
The decimal point separates the whole number part from the fractional part.
3 . 1 4 1 5 9
│ │ │ │ │ │ │
│ │ │ │ │ │ └── Hundred-thousandths (1/100,000)
│ │ │ │ │ └────── Ten-thousandths (1/10,000)
│ │ │ │ └────────── Thousandths (1/1,000)
│ │ │ └────────────── Hundredths (1/100)
│ │ └────────────────── Tenths (1/10)
│ └───────────────────── Decimal Point
└──────────────────────── Ones (1)
Decimal Place Value Chart
| Place Name | Value | Fraction | Example in 47.8362 |
|---|---|---|---|
| Tens | 10 | — | 4 (= 40) |
| Ones | 1 | — | 7 (= 7) |
| . (Decimal Point) | — | — | . |
| Tenths | 0.1 | 1/10 | 8 (= 0.8) |
| Hundredths | 0.01 | 1/100 | 3 (= 0.03) |
| Thousandths | 0.001 | 1/1000 | 6 (= 0.006) |
| Ten-thousandths | 0.0001 | 1/10000 | 2 (= 0.0002) |
47.8362 = 40 + 7 + 0.8 + 0.03 + 0.006 + 0.0002
Converting Between Fractions and Decimals
Fraction → Decimal
Divide the numerator by the denominator.
| Fraction | Division | Decimal |
|---|---|---|
| ½ | 1 ÷ 2 | 0.5 |
| ¼ | 1 ÷ 4 | 0.25 |
| ⅓ | 1 ÷ 3 | 0.333... (repeating) |
| ⅕ | 1 ÷ 5 | 0.2 |
| ⅛ | 1 ÷ 8 | 0.125 |
| ⅙ | 1 ÷ 6 | 0.1666... (repeating) |
| 1/7 | 1 ÷ 7 | 0.142857... (repeating) |
| 1/9 | 1 ÷ 9 | 0.111... (repeating) |
| 1/11 | 1 ÷ 11 | 0.0909... (repeating) |
Decimal → Fraction
Read the decimal aloud, write it as a fraction, then simplify.
Example: Convert 0.75 to a fraction
Step 1: 0.75 = "seventy-five hundredths" = 75/100
Step 2: Simplify → GCF of 75 and 100 = 25
Step 3: 75 ÷ 25 = 3, 100 ÷ 25 = 4
Result: 0.75 = ¾
Quick Reference: Decimals ↔︎ Fractions
| Fraction | Decimal | Fraction | Decimal |
|---|---|---|---|
| 1/2 | 0.5 | 1/8 | 0.125 |
| 1/3 | 0.333... | 3/8 | 0.375 |
| 2/3 | 0.666... | 5/8 | 0.625 |
| 1/4 | 0.25 | 7/8 | 0.875 |
| 3/4 | 0.75 | 1/5 | 0.2 |
| 1/6 | 0.1666... | 2/5 | 0.4 |
| 5/6 | 0.8333... | 3/5 | 0.6 |
| 1/9 | 0.111... | 4/5 | 0.8 |
Terminating vs. Repeating Decimals
Terminating decimals end after a finite number of digits:
½ = 0.5 ¼ = 0.25 ⅛ = 0.125
Repeating decimals have a pattern that goes on forever:
⅓ = 0.333... written as 0.3̄
⅙ = 0.1666... written as 0.16̄
1/7 = 0.142857142857... written as 0.1̄4̄2̄8̄5̄7̄
The rule: If the denominator (in simplest form) has only factors of 2 and/or 5, the decimal terminates. Otherwise, it repeats.
| Denominator | Prime Factors | Terminates? |
|---|---|---|
| 2 | 2 | ✅ Yes |
| 4 | 2² | ✅ Yes |
| 5 | 5 | ✅ Yes |
| 8 | 2³ | ✅ Yes |
| 10 | 2 × 5 | ✅ Yes |
| 20 | 2² × 5 | ✅ Yes |
| 25 | 5² | ✅ Yes |
| 3 | 3 | ❌ Repeats |
| 6 | 2 × 3 | ❌ Repeats |
| 7 | 7 | ❌ Repeats |
| 9 | 3² | ❌ Repeats |
| 11 | 11 | ❌ Repeats |
Decimal Operations
Addition & Subtraction
Golden Rule: Line up the decimal points.
Example: 23.456 + 8.9
23.456
+ 8.900 ← Add trailing zeros to align
────────
32.356
Example: 50.2 - 13.875
50.200 ← Add trailing zeros
- 13.875
────────
36.325
Multiplication
Multiply as if there's no decimal point, then count total decimal places.
Example: 3.14 × 2.5
Step 1: Multiply 314 × 25 = 7,850
Step 2: Count decimal places: 3.14 has 2, 2.5 has 1 → Total = 3
Step 3: Place decimal 3 places from right: 7.850 → 7.850
Result: 3.14 × 2.5 = 7.850 = 7.85
Division
Move the decimal in the divisor to make it a whole number, then move it the same number of places in the dividend.
Example: 8.64 ÷ 3.2
Step 1: 3.2 → move decimal 1 place right → 32
Step 2: 8.64 → move decimal 1 place right → 86.4
Step 3: 86.4 ÷ 32 = 2.7
Result: 8.64 ÷ 3.2 = 2.7
Decimal Operations Summary
| Operation | Key Rule | Example | Result |
|---|---|---|---|
| Addition | Align decimal points | 4.56 + 2.3 | 6.86 |
| Subtraction | Align decimal points | 10.5 - 3.72 | 6.78 |
| Multiplication | Count total decimal places | 1.2 × 0.3 | 0.36 |
| Division | Make divisor a whole number | 6.5 ÷ 0.5 | 13 |
Rounding Decimals
Sometimes you don't need all those decimal places.
Rule: Look at the digit ONE PLACE to the right of where you want to round.
- If it's 5 or more → round UP
- If it's less than 5 → round DOWN (keep it as is)
Example: Round 3.4567 to various places:
| Round to... | Look at... | Result |
|---|---|---|
| Whole number | 4 (tenths place) | 3 |
| 1 decimal place | 5 (hundredths place) | 3.5 |
| 2 decimal places | 6 (thousandths place) | 3.46 |
| 3 decimal places | 7 (ten-thousandths place) | 3.457 |
PERCENTAGES — THE UNIVERSAL LANGUAGE OF COMPARISON
What Is a Percentage?
Percent literally means "per hundred" (from Latin: per centum).
A percentage is a fraction with a denominator of 100.
25% = 25/100 = 0.25 = ¼
The Holy Trinity: Fraction ↔︎ Decimal ↔︎ Percentage
These three are the same number in different costumes:
| Fraction | Decimal | Percentage |
|---|---|---|
| 1/100 | 0.01 | 1% |
| 1/10 | 0.1 | 10% |
| 1/5 | 0.2 | 20% |
| 1/4 | 0.25 | 25% |
| 1/3 | 0.333... | 33.33...% |
| 1/2 | 0.5 | 50% |
| 3/5 | 0.6 | 60% |
| 2/3 | 0.666... | 66.67% |
| 3/4 | 0.75 | 75% |
| 4/5 | 0.8 | 80% |
| 9/10 | 0.9 | 90% |
| 1/1 | 1.0 | 100% |
| 5/4 | 1.25 | 125% |
| 3/2 | 1.5 | 150% |
| 2/1 | 2.0 | 200% |
The Conversion Triangle
This is the single most important skill in practical mathematics.
Fraction → Decimal → Percentage
FRACTION ──divide──→ DECIMAL ──× 100──→ PERCENTAGE
↑ │
└──────────────── ÷ 100 ─────────────────┘
Step-by-Step Conversions
Fraction → Decimal:
Divide numerator by denominator.
¾ → 3 ÷ 4 = 0.75
Decimal → Percentage:
Multiply by 100 (or move decimal 2 places right).
0.75 → 0.75 × 100 = 75%
Percentage → Decimal:
Divide by 100 (or move decimal 2 places left).
75% → 75 ÷ 100 = 0.75
Decimal → Fraction:
Write as fraction over appropriate power of 10, then simplify.
0.75 → 75/100 → ¾
Percentage → Fraction:
Write over 100, then simplify.
75% → 75/100 → ¾
Fraction → Percentage:
Convert to decimal first, then multiply by 100.
¾ → 0.75 → 75%
Complete Conversion Table — Your Permanent Reference
| Fraction | Decimal | Percentage | Fraction | Decimal | Percentage |
|---|---|---|---|---|---|
| 1/100 | 0.01 | 1% | 1/8 | 0.125 | 12.5% |
| 1/50 | 0.02 | 2% | 1/7 | 0.1429 | 14.29% |
| 1/25 | 0.04 | 4% | 1/6 | 0.1667 | 16.67% |
| 1/20 | 0.05 | 5% | 1/5 | 0.2 | 20% |
| 1/10 | 0.1 | 10% | 1/4 | 0.25 | 25% |
| 1/9 | 0.1111 | 11.11% | 1/3 | 0.3333 | 33.33% |
| 3/8 | 0.375 | 37.5% | 2/5 | 0.4 | 40% |
| 1/2 | 0.5 | 50% | 3/5 | 0.6 | 60% |
| 5/8 | 0.625 | 62.5% | 2/3 | 0.6667 | 66.67% |
| 3/4 | 0.75 | 75% | 4/5 | 0.8 | 80% |
| 5/6 | 0.8333 | 83.33% | 7/8 | 0.875 | 87.5% |
| 9/10 | 0.9 | 90% | 1/1 | 1.0 | 100% |
The Three Fundamental Percentage Problems
Every percentage problem you'll ever encounter falls into ONE of three categories:
Type 1: Finding a Percentage OF a Number
"What is P% of N?"
Formula: Result = (P / 100) × N
Example: What is 15% of 2,400?
Result = (15 / 100) × 2,400
Result = 0.15 × 2,400
Result = 360
Real-world use: Sales tax, tips, discounts, interest calculations.
Type 2: Finding What Percentage One Number Is OF Another
"A is what percent of B?"
Formula: Percentage = (A / B) × 100
Example: You scored 42 out of 60 on a test. What's your percentage?
Percentage = (42 / 60) × 100
Percentage = 0.7 × 100
Percentage = 70%
Real-world use: Test scores, performance metrics, proportions.
Type 3: Finding the Original Number When You Know the Percentage
"P% of what number is A?"
Formula: Original Number = A / (P / 100)
Example: 30% of a number is 450. What's the number?
Original = 450 / (30 / 100)
Original = 450 / 0.30
Original = 1,500
Real-world use: Reverse-engineering prices, finding original amounts.
The Three Types at a Glance
| Type | Question | Formula | Example |
|---|---|---|---|
| 1 | What is P% of N? | (P/100) × N | 20% of 500 = 100 |
| 2 | A is what % of B? | (A/B) × 100 | 30 is 60% of 50 |
| 3 | P% of ? = A | A ÷ (P/100) | 25% of 800 = 200 |
Percentage Increase and Decrease
Percentage Increase
Formula: Percentage Increase = ((New Value - Original Value) / Original Value) × 100
Example: A product's price went from 80 to 92.
Increase = 92 - 80 = 12
Percentage Increase = (12 / 80) × 100 = 15%
To apply an increase:
New Value = Original × (1 + Percentage/100)
80 × (1 + 15/100) = 80 × 1.15 = 92
Percentage Decrease
Formula: Percentage Decrease = ((Original Value - New Value) / Original Value) × 100
Example: A stock dropped from 250 to 200.
Decrease = 250 - 200 = 50
Percentage Decrease = (50 / 250) × 100 = 20%
To apply a decrease:
New Value = Original × (1 - Percentage/100)
250 × (1 - 20/100) = 250 × 0.80 = 200
The Asymmetry Trap — A Critical Warning
A percentage increase followed by the same percentage decrease does NOT bring you back to the original number.
Proof:
Start with 100.
Increase by 50%: 100 × 1.50 = 150
Decrease by 50%: 150 × 0.50 = 75
You're at 75, NOT 100!
This is why investors lose more on downturns than they gain on upturns:
| Start | Gain | After Gain | Loss | After Loss | Net Change |
|---|---|---|---|---|---|
| 1,000 | +10% | 1,100 | -10% | 990 | -1% |
| 1,000 | +20% | 1,200 | -20% | 960 | -4% |
| 1,000 | +30% | 1,300 | -30% | 910 | -9% |
| 1,000 | +50% | 1,500 | -50% | 750 | -25% |
| 1,000 | +100% | 2,000 | -100% | 0 | -100% |
Key insight: The bigger the swings, the more damage is done. This is called volatility drag in finance. Remember it.
Successive Percentages
When percentages are applied one after another:
Multiply the multipliers.
Example: A shirt is marked up 40% then discounted 25%. What's the net change?
Multiplier for 40% increase: 1.40
Multiplier for 25% decrease: 0.75
Combined: 1.40 × 0.75 = 1.05
Net effect: 5% increase
General Formula for Successive Changes:
Final = Original × (1 ± p₁/100) × (1 ± p₂/100) × (1 ± p₃/100) × ...
Successive Percentage Quick Reference
| First Change | Second Change | Combined Multiplier | Net Effect |
|---|---|---|---|
| +10% | +10% | 1.1 × 1.1 = 1.21 | +21% |
| +20% | +20% | 1.2 × 1.2 = 1.44 | +44% |
| +10% | -10% | 1.1 × 0.9 = 0.99 | -1% |
| +20% | -20% | 1.2 × 0.8 = 0.96 | -4% |
| +50% | -30% | 1.5 × 0.7 = 1.05 | +5% |
| -10% | -10% | 0.9 × 0.9 = 0.81 | -19% |
| +25% | +25% | 1.25 × 1.25 = 1.5625 | +56.25% |
Compound Interest — Percentages Over Time
This is arguably the single most important financial concept you'll ever learn.
Formula: A = P × (1 + r/n)^(n×t)
Where:
- A = Final Amount
- P = Principal (starting amount)
- r = Annual interest rate (as a decimal)
- n = Number of times interest is compounded per year
- t = Number of years
Simple Interest vs. Compound Interest Comparison
Starting with 10,000, interest rate of 8% per year:
| Year | Simple Interest | Compound Interest (Annual) | Difference |
|---|---|---|---|
| 0 | 10,000 | 10,000 | 0 |
| 1 | 10,800 | 10,800 | 0 |
| 2 | 11,600 | 11,664 | 64 |
| 5 | 14,000 | 14,693 | 693 |
| 10 | 18,000 | 21,589 | 3,589 |
| 15 | 22,000 | 31,722 | 9,722 |
| 20 | 26,000 | 46,610 | 20,610 |
| 25 | 30,000 | 68,485 | 38,485 |
| 30 | 34,000 | 100,627 | 66,627 |
After 30 years, compound interest gives you nearly 3× what simple interest gives. This is why Einstein (allegedly) called compound interest the "eighth wonder of the world."
The Rule of 72
To estimate how long it takes your money to double:
Years to Double ≈ 72 / Interest Rate
| Interest Rate | Years to Double |
|---|---|
| 1% | 72 years |
| 2% | 36 years |
| 4% | 18 years |
| 6% | 12 years |
| 8% | 9 years |
| 10% | 7.2 years |
| 12% | 6 years |
| 15% | 4.8 years |
| 20% | 3.6 years |
Percentage Applications in Real Life
Application 1: Discounts and Sales
Scenario: An item costs 450, and there's a 30% discount.
Discount Amount = 30% of 450 = 0.30 × 450 = 135
Sale Price = 450 - 135 = 315
Shortcut: Sale Price = 450 × (1 - 0.30) = 450 × 0.70 = 315
Stacking Discounts:
A 20% coupon on top of a 30% sale:
After 30% off: 450 × 0.70 = 315
After additional 20% off: 315 × 0.80 = 252
⚠️ This is NOT a 50% discount! It's actually: 1 - (0.70 × 0.80) = 1 - 0.56 = 44% off.
Application 2: Tax Calculations
Scenario: Item costs 200, tax rate is 15%.
Tax Amount = 200 × 0.15 = 30
Total = 200 + 30 = 230
Reverse calculation — finding the pre-tax price:
If the total (with 15% tax included) is 230:
Pre-tax Price = 230 / 1.15 = 200
General Formula: Pre-tax Price = Total / (1 + Tax Rate/100)
Application 3: Tips
Quick Mental Math Tips Table:
| Tip % | Mental Math Shortcut |
|---|---|
| 10% | Move decimal one place left |
| 15% | Find 10%, then add half of that |
| 20% | Find 10%, then double it |
| 25% | Divide by 4 |
Example: Bill is 84.60
10% = 8.46
15% = 8.46 + 4.23 = 12.69
20% = 8.46 × 2 = 16.92
25% = 84.60 / 4 = 21.15
Application 4: Profit and Loss
Profit % = ((Selling Price - Cost Price) / Cost Price) × 100
Loss % = ((Cost Price - Selling Price) / Cost Price) × 100
| Cost Price | Selling Price | Profit/Loss | % |
|---|---|---|---|
| 500 | 650 | Profit: 150 | +30% |
| 1,200 | 900 | Loss: 300 | -25% |
| 80 | 100 | Profit: 20 | +25% |
| 2,000 | 1,700 | Loss: 300 | -15% |
Application 5: Mixtures and Concentrations
Scenario: You mix 200ml of a 30% solution with 300ml of a 50% solution. What's the resulting concentration?
Amount of solute from first: 200 × 0.30 = 60ml
Amount of solute from second: 300 × 0.50 = 150ml
Total solute: 60 + 150 = 210ml
Total volume: 200 + 300 = 500ml
Concentration = (210/500) × 100 = 42%
Application 6: Population Growth and Decline
Formula: Future Population = Current Population × (1 + Growth Rate/100)^Years
Example: A city of 2 million grows at 3% annually. Population after 10 years?
Future = 2,000,000 × (1.03)^10
Future = 2,000,000 × 1.3439
Future ≈ 2,687,800
Percentages of Percentages — Percentage Points vs. Percent
This is where many adults — including news anchors and politicians — get confused.
The Difference
- Percentage points: The arithmetic difference between two percentages.
- Percent change: The relative change from one percentage to another.
Example: Interest rates go from 4% to 5%.
| Measure | Calculation | Result |
|---|---|---|
| Change in percentage points | 5% - 4% | 1 percentage point |
| Percent change | ((5 - 4) / 4) × 100 | 25% increase |
Saying "rates increased by 1%" is ambiguous. Does it mean rates went to 5%? Or rates went to 4.04%? Always specify percentage points when talking about the arithmetic difference.
Advanced Percentage Formulas Reference
Complete Formula Sheet
| Situation | Formula |
|---|---|
| P% of N | (P/100) × N |
| A is what % of B | (A/B) × 100 |
| P% of what is A | A ÷ (P/100) |
| % Increase | ((New - Old)/Old) × 100 |
| % Decrease | ((Old - New)/Old) × 100 |
| After increase | Original × (1 + P/100) |
| After decrease | Original × (1 - P/100) |
| Successive changes | Original × (1 ± p₁/100) × (1 ± p₂/100) |
| Compound Interest | P × (1 + r/n)^(nt) |
| Reverse % (find original) | Final Amount ÷ (1 ± P/100) |
| Weighted Average % | (Σ weight × value) / Σ weight |
| % Error | ( |
| Markup from Cost | Cost × (1 + Markup%/100) |
| Margin from Selling | SP × (1 - Margin%/100) = Cost |
PUTTING IT ALL TOGETHER
the practitioner's Restaurant Bill — Revisited
Remember the opening scene? Let's solve it with the practitioner, who's now a completely different person.
The bill: 847.50, split 4 ways, 18% tip.
Step 1: Calculate the tip
18% of 847.50
= 0.18 × 847.50
= 152.55
Step 2: Total with tip
847.50 + 152.55 = 1,000.05
Step 3: Split 4 ways
1,000.05 ÷ 4 = 250.01 per person
(First person pays 250.02 to cover the extra cent)
the practitioner looked up from her phone and said, "250 and one cent each. I'll throw in the extra cent."
Her friends stared.
"Since when do you..." the practitioner started.
the practitioner just smiled.
