Fractions, Decimals, Approximations,
and Percentages
1. Fractions and Decimals
Fractions represent a part of a whole and are written as a numerator over a
denominator. Decimals are another way of expressing fractions, where the
denominator is a power of ten. Being able to convert between fractions and
decimals is an essential skill.
3
Example of conversion: = 0.75
4
Performing basic operations (addition, subtraction, multiplication, and division) on
fractions and decimals is crucial in many real-world situations.
2. Significant Figures
Significant figures are used to express the precision of a number. They include all
the digits that carry meaning towards its measurement accuracy. When rounding
numbers, we often specify the number of significant figures to retain the precision
required.
Example: Rounding 123.456 to 3 significant figures gives 123.
3. Decimal Places
Decimal places refer to the number of digits shown to the right of the decimal
point. This is important when we need to control the precision of a number,
especially in financial and scientific calculations.
Example: Rounding 3.14159 to 2 decimal places gives 3.14.
4. Percentage Errors
Percentage error is used to determine the accuracy of a measurement by
comparing the approximate value to the actual value. It is calculated using the
formula:
|Actual - Approximate|
Percentage Error = × 100
Actual
5. Simple Interest
Simple interest is calculated using the formula:
P×R×T
I=
100
Where:
P is the principal (initial amount of money)
R is the rate of interest per period
T is the time the money is invested or borrowed for
6. Profit and Loss Percent
Profit and loss percentages are used to express the gain or loss made on an
investment or transaction as a percentage of the cost price. The formulas are:
Profit Loss
Profit % = × 100 Loss % = × 100
Cost Price Cost Price
7. Ratio, Proportion, and Rate
A ratio is a comparison between two quantities, showing how many times one
value contains another. Proportions show that two ratios are equal. Rates are a
special type of ratio where the two quantities being compared have different units.
Example: If the ratio of apples to oranges is 3:2, it means for every 3 apples, there
are 2 oranges.
8. Shares and VAT (Value Added Tax)
Shares represent ownership in a company, and dividends are profits distributed to
shareholders. Understanding how to calculate dividends based on shares owned
is important in finance. VAT is a consumption tax added to goods and services,
typically calculated as a percentage of the sale price.
100 × 5
Example: If VAT is 5% and an item costs $100, the VAT would be =5
100
dollars.
