A. Unit 2.

Decimals and Percentage

Unit Learning Outcomes:

✓ Perform fundamental operations on fractions and decimals.

✓ Express fractions to decimals and percent forms and vice versa.

Thinking activity:

1. Think of different instances wherein we are using decimals.

2. Enumerate at least 3 practical instances where decimals are used.
3. Imagine if we use fractions instead of decimals in the examples you have given.
How will it affect us?

Your answers may vary. Here are some instances wherein we are using decimals.
1. Money matters like payslips, bank accounts, bills, receipts, financial reports, etc.
2. Readings of gasoline consumption
3. Car’s odometer readings

There are many instances wherein it is easier for us to deal with decimals than
fractions. Let’s see them in the following lessons.
 Big idea
Decimals are widely used in terms of money and data or reports.

Decimals are numbers with decimal point and decimal places as shown in the table
below. They are fractions with a denominator of 10, 100, 1000, or any multiple or power of
ten. The numeric value of a decimal numeral is always less than one.

Ten thousandths
Whole number

Ten millionths
Decimal point

thousandths

thousandths
hundredths

millionths

millionths

billionths
Hundred

Hundred
tenths

0 . 6 5 4 7 1 5 2 9 8

Many business transactions involve decimal system. Decimals play an important

role for designating fractional values. They are simpler and easy to read and faster to use
when performing mathematical computations. Can you imagine if we use factions in terms of
counting money?

Kinds of Decimals
Type Examples
1. Terminating decimals 0.10, 1.25, 3.50, 5.0001

2. Nonterminating, repeating decimals 0.222222 or 0.2, 5.0606 or 5.06

3. Nonterminating, nonrepeating decimals √2 or (1.41421…), p or (3.14159…)
Addition and Subtraction of Decimals

Addition and subtraction of decimal numbers are similar with the addition and
subtraction of whole numbers, the only difference is the placement of the decimal point after
the operations.

Steps in adding and subtracting decimals

① When adding or subtracting decimals, it may help to write them vertically. Just make
sure to align digits having the same place value as well as the decimal point. Then
start adding or subtracting the digits from right to left. Do not forget to write the
decimal point in the sum or difference.

For example:
3.62 3.28
+ 6.21 - 2.21
9.83 1.07

② Whenever necessary, you may annex additional zeros in a decimal to have the same
number of place values in the given.

For example:
5.60 12.900
+ 0.21 - 6.213
5.81 6.687

15.6500 21.0840
+ 11.7562 - 9.7165
9.4062 11.2675

*Problem Solving Involving Addition and Subtraction of Decimals

1. What is the total amount due on your electric bill if the breakdown of electricity
charges include ₱941.71 for generation, ₱163.32 for transmission, ₱97.07 for
system loss, ₱386.68 for distribution, ₱32.13 for subsidies, ₱179.88 for government
taxes, ₱61.32 for universal charges, and ₱7.06 for FIT-All (renewable)?

Solution:
Generation ₱941.71
 Transmission 163.32
System loss 97.07
Distribution 386.68
Subsidies 32.13
Government taxes 179.88
Universal charges 61.32
FIT-All + 7.06
Total electric bill ₱1869.17

2. Your business needed an additional capital of ₱150,000.00 which you planned to

withdraw from your savings account. If you have ₱231,452.49 in your account and
you know that the withholding tax will be ₱71.07 (debited from the amount in the
account), how much will be left in your savings account?

Solution:
Determine the total amount that will be deducted from the savings account.
add the additional capital and the withholding tax.

₱150,000.00
+ 71.07
₱150,071.07

Subtract ₱150,071.07 from ₱231,452.49

₱231,452.49
- 150,071.07
₱ 81,381.42

The amount that will be left in your savings account is ₱81,381.42.

Multiplying Decimals

When multiplying decimals, write them vertically and align their rightmost digits. You
do not need to align the decimal points. Multiply decimals in the same way as you would
multiply whole numbers. Lastly, count the total number of decimal places of the factors,
which will be the number of decimal places of the product.

For example:
3.75 0.25 24.75
x 2.5 x 50 x 2.25
1875 000 22.275
+ 750 + 125
9.375 12.50

*Problem Solving Involving Multiplication of Decimals

1. If your employee’s hourly rate is ₱122.61, how much is his daily rate if he works
for 8 hours in a day?

Solution:
Daily rate = hourly rate x number of working hours per day
 = ₱122.61/h x 8 h/day
= ₱980.88

2. You purchased 2000 shares of Jollibee Corporation at ₱97.87 per share. Your
stock broker charges 3% commission. Calculate the total cost of your Jollibee
Corporation shares.

Solution:
Cost of shares = price per share x number of shares
= ₱97.87 x 2000
= ₱195,740.00

Broker’s commission = cost of shares x commission rate

= ₱195,740.00 x 0.03
= ₱5,872.20

Total cost = cost of shares + broker’s commission

= ₱195,740.00 + ₱5,872.20
= ₱201,612.20

Dividing Decimals

In dividing decimal numbers, first move the decimal point to the right until the
divisor and/or dividend will become whole numbers. Then divide. Study how this is
done through the example below.

a) 23.6  0.5

Solution:
Set up the division, adding as many zeroes as necessary to the right of the
decimal point.

0.5 23.60

Move the decimal places to the right making it a whole number. Then divide.

47.2
5 236.0
20
36
35
10
10
0

The quotient is 47.2.

*Problem Solving Involving Multiplication of Decimals

1. As a newly promoted human resources manager, you are conducting a study about the
salary and wage structure of your company. One of the documents on your table shows
that the annual gross compensation income of an employee from your department is
₱223,720.29. You would like to determine whether the employee is receiving the
minimum wage rate or not. Compute the employee’s daily gross income.

Solution:
Daily gross income = annual gross income  number of days in a year

Compute the number of workdays in a year. Assuming that your company has a 6-
day workweek, then
6 days x 52 weeks = 312 days
Daily gross income = ₱223,720.29  312
= ₱717.05

2. Knowledge of the break-even point (the point where your total revenue is equal to your
total cost) of your business will help you avoid losses. Based on your accounting records,
your small business has a total fixed cost of ₱10,000.00, direct labor per unit of ₱14.25,
and direct material per unit of ₱8.75. The selling price per unit is ₱47.50. Determine the
break-even point in pesos and in units.

Solution:
Break-even point in pesos = fixed cost
1 – (variable cost/selling price)
= 10,000
1 – [(14.25 + 8.75)/47.50]
= ₱19387.76

Break-even point in units = fixed cost = 10,000

Selling price – variable cost 47.50 – (14.25 + 8.75)
= 408.16 units

Percent

People would often use the words percent and percentage interchangeably.
However, these two words are not synonymous. The use of the term percent or % should
be accompanied by a specific number, while percentage is used without the % and in some
cases may be used alone without a specific value. For example, “70 percent or 70% of
Grade 11 ABM students are doing OBL this semester,” but the percentage of Grade 11 ABM
students utilizing OBL has decreased.” A percent refers to parts per hundred, while
percentage is the result obtained by multiplying a number by a percent.

Fractions, Decimals, and Percents

A value or quantity can be expressed as a fraction, a decimal, or a percent. You

must know how to convert a fraction into decimal and percent forms, and vice versa.

a) Converting fractions to decimals

 To convert a fraction to a decimal, divide the numerator by its denominator.

For example:
 5
a)
8

0.625
8 5.000
48
20
16
40
40
0

 To convert a mixed number to a decimal, write first the mixed number as a sum of a
whole number and a fraction: Then convert the fraction as a decimal. Finally, add the
resulting decimal to the whole number.
For example:

1 1
5 =5+
10 10

1 0.1
= 10 1.0
10
10
0

Therefore, 5 + 0.1 = 5.1

b) Converting decimal to fractions

 To convert a decimal to a fraction, consider first the place value of the rightmost digit
in the decimal to determine the denominator of the fraction. Use the number after
the decimal point as the numerator of the fraction. Reduce the resulting fraction in
nits lowest term whenever possible.

For example:

75 ÷ 25 3
a) 75% = =
100÷25 4
12 ÷ 4 3
b) 12% = =
100 ÷4 25

 To convert a fraction to a percent, simply reverse the process in the previous

example. Another way is to divide the numerator by the denominator to multiply it by
100%. Note that multiplying a 100% will not change its value because 100% is just
the same as 1 whole.

For example:
 3
a) = 0.60 × 100% = 60%
5
1
b) 1 = 1.5 × 100% = 150%
2

3. Converting Decimals to Percents

 To convert a decimal into a percent, move the decimal point in two places to the
right, and then affix the percent sign to the result.

For example:

a) 0.1 = 0.10 = 10%

b) 0.45 = 0.45 = 45%

c) 0.125 = 0.12 = 12.5%

 When converting a percent to a decimal, get first its equivalent fraction. Then
change the resulting fraction into its equivalent decimal.

For example:
15
a) 15% = = 0.15
100
72
b) 72% = = 0.72
100

 Another way is to simply drop the percent symbol, and then move the decimal point
two places to the left.

For example:
a) 15% = 15. = 0.15

b) 72% = .72 = 0.72

Applications in business:
Finding the Percentage

 Percentage is obtained by multiplying a number by a percent. The formula for

computing the percentage is
P=B × R

where P = percentage given as a part of the base

B = base given as the total
R = rate given as a percent or a decimal

For example:
a) What is 5% of 120?

P=B × R
= 120 × 5%
= 120 × 0.05
=6

b) What is 60% 0f 700?

P=B × R
= 700 × 60%
= 700 × .60
= 420

c) How much value added tax would you pay for our internet bill amounting to
₱1,279.00? How much would be your total payment after applying 12% VAT?

Solution:

VAT = Internet bill × tax rate

= ₱1,279.00 × 0.12 = 153.48

Total payment = Internet bill + VAT

= ₱1,279.00 + 153.48
= ₱1,432.48

d) An appliance center is offering 20% on their smart TV. If you are going to buy a
smart TV worth ₱120,000.00. How much was the discounted price of the TV?

Solution:

Discount = original price × discount rate

= ₱120,000.00 × 0.20
= ₱24.000.00

Discounted Price = Original price – Discount

= ₱120,000.00 - ₱24,000.00
= ₱96,000.00

Therefore, the discounted price of the smart TV is ₱96,000.00

Finding the Base
 𝑃
 To find the base, simply divide the percentage by the rate B
𝑅
For example:

a) 8% of what number is 19?

𝑃 19
B = = 237.50
𝑅 0.08

b) 620 is 80% of what number?

𝑝 620
B = = 775
𝑅 0.80
c) Riza got a discount of 15% equivalent to ₱798.25 for a pair of brand new shoes.
How much was the original price of the shoes that she bought?

Solution:

Discounted Price = Original price × discount rate

Discounted Price 798.25

Original price = =
Discount Rate 0.15

= 5,321.67

The original price of the shoes is ₱5,321.67

Finding the Rate

𝑃
 To find the rate, simply divide the percentage by the base R =
𝐵
For example:

a) What percent of 180 is 28?

𝑃 28
R= = = 0.1555 = 15.5%
𝐵 180

b) 120 is what percent of 150?

𝑝 120
R= = = 0.8 = 80%
𝑏 150

c) For the Valentine’s Day promo, your store is giving a ₱150 off for a minimum
purchase of ₱1,750. How much is the discount rate given by your store?

Discount 150
Rate = = = 0.0857 = 8.57?
Purchase 1750
The discount rate given for Valentine’s Day by your store is 8.57%.