As you are going through the sections in Chapter 8, you will notice that we are working with percent, sales tax, and income tax.

1. How to:
   • Express a fraction as a percent
   • Express a decimal as a percent
   • Express a percent as a decimal
   • Express a percent as a fraction
2. Please provide detailed explanation and numerical examples for each answer.

8.1 Percent, Sales Tax, and Discounts "And if elected, it is my solemn pledge to cut your taxes WHAT AM I by 10% for each of my first three years in office, for a SUPPOSED TO LEARN? total cut of 30%." After studying this section, you PERSONAL FINANCE INCLUDES EVERY should be able to: area of your life that involves 1 Express a fraction as a percent. money. It's about what you do 2 Express a decimal as a percent. with your money and how financial 3 Express a percent as a decimal. management will affect your future. Because an understanding 4 Solve applied problems involving sales tax and discounts. of percent plays an important role in personal finance, we open the chapter 5 Determine percent increase or with a discussion on the meaning, uses, and decrease. abuses of percent. 6 Investigate some of the ways percent can be abused. Basics of Percent Kinds of Textbooks Percents are the result of expressing numbers as part of 100. The word percent College Students Prefer: Preferences per 100 Students means per hundred. For example, the circle graph in Figure 8.1 shows that 55 out of every 100 college students prefer print textbooks. Thus, 100 = 55%, indicating No Preference that 55% of college students prefer print textbooks. The percent sign, %, is used to indicate the number of parts out of 100 parts.10 A fraction can be expressed as a percent using the following procedure: Print Digital 35 55 (tablet, EXPRESSING A FRACTION AS A PERCENT e-reader, computer) 1. Divide the numerator by the denominator. 2. Multiply the quotient by 100. This is done by moving the decimal point in FIGURE 8.1 the quotient two places to the right. Source: Harris Interactive for Pearson Foundation 3. Add a percent sign. 1 Express a fraction as a percent. EXAMPLE 1 Expressing a Fraction as a Percent Express as a percent. SOLUTION Step 1 Divide the numerator by the denominator. 5 + 8 = 0.625 Step 2 Multiply the quotient by 100. 0.625 X 100 = 62.5 Step 3 Attach a percent sign. 62.5% Thus, g = 62.5%. CHECK POINT 1 Express g as a percent.GREAT QUESTION! EXAMPLE 2 Expressing a Decimal as a Percent What's the difference between Express 0.47 as a percent. the word percentage and the word percent? SOLUTION Dictionaries indicate that the Move decimal point word percentage has the same two places to the right. meaning as the word percent. Use the word that sounds 0.47 % Attach a percent sign. better in the circumstance. Thus, 0.47 = 47%. CHECK POINT 2 Express 0.023 as a percent. Express a percent as a decimal. We reverse the procedure of Example 2 to express a percent as a decimal number. EXPRESSING A PERCENT AS A DECIMAL NUMBER 1. Move the decimal point two places to the left. 2. Remove the percent sign. EXAMPLE 3 Expressing Percents as DecimalsEXAMPLE 3 Expressing Percents as Decimals Express each percent as a decimal: a. 19% b. 180%. SOLUTION Use the two steps in the box. a. The percent sign 19% = 19.% = 0.19% is removed. w The decimal point starts at the far right The decimal point is moved two places to the left. Thus, 19% = 0.19. b. 180% = 1.80% = 1.80 or 1.8 CHECK POINT 3 Express each percent as a decimal: a. 67% b. 250%. If a fraction is part of a percent, as in 4%, begin by expressing the fraction as a decimal, retaining the percent sign. Then, express the percent as a decimal number. For examplesales tax and discounts. ll Solve applied problems involving Percent, Sales Tax, and Discounts Many applications involving percent are based on the following formula: A II Ppmnt If B. A=P~B. Note that the word of implies multiplication. We can use this formula to determine the sales tax collected by states, counties, and cities on sales of items to customers. The sales tax is a percent of the cost of an item. Sales tax amount = tax rate >