topic badge

8.05 Personal finance and percentages

Lesson

Are you ready?

Can you  find a percentage of an amount  ?

Examples

Example 1

What is 10\% of 60?

Worked Solution
Create a strategy

Use the fact that 10\% is equal to \dfrac{1}{10} and "of" means multiply.

Apply the idea
\displaystyle 10\% \text{ of } 60\displaystyle =\displaystyle \dfrac{1}{10} \times 60Replace 10\% with \dfrac{1}{10} and "of" with \times
\displaystyle =\displaystyle 6Cancel out the 0s
Idea summary

We can find a percentage of a quantity by converting the percentage to a fraction and multiplying by the quantity.

Percentage discounts

How can we work out percentage discounts? In this video, we see how to do that, as well as work out the discounted price we need to pay.

Loading video...

Examples

Example 2

William is going to buy a jumper that is marked as 50\% off. The original price is \$96.

a

What is the value of the discount?

Worked Solution
Create a strategy

50\% of the price is the same as half the price.

Apply the idea
\displaystyle \text{Discount}\displaystyle =\displaystyle 96\times 50\%Multiply by 50\%
\displaystyle =\displaystyle 96\times \dfrac{1}{2}Multiply by \dfrac{1}{2}
\displaystyle =\displaystyle \$48Halve 96
b

What is the price that William will pay for the jumper?

Worked Solution
Create a strategy

Subtract the discount from the original price.

Apply the idea
\displaystyle \text{Price}\displaystyle =\displaystyle 96 - 48Subtract 48 from 96
\displaystyle =\displaystyle \$48
Idea summary

To find the discount, multiply the original price by the percentage of the discount.

To find the discounted price, subtract the discount from the original price.

Goods and sales tax

In Australia, Goods and Services Tax, or GST for short, is a 10\% tax that is charged on top of most things you buy. Let's learn more about calculating GST.

Loading video...

Examples

Example 3

Joanne's bike cost \$90, excluding the 10\% goods and services tax (GST).

a

How much GST will Joanne get charged?

Worked Solution
Create a strategy

Find the 10\% of \$90.

Apply the idea
\displaystyle \text{GST}\displaystyle =\displaystyle 90 \times 10\%Multiply 90 by 10\%
\displaystyle =\displaystyle 90 \times \dfrac{1}{10}Convert the percentage to a fraction
\displaystyle =\displaystyle \$9Cancel out the 0s
b

What is the total amount Joanne pays for her bike?

Worked Solution
Create a strategy

We can use the formula: \text{Cost of items} + \text{GST} = \text{Total amount paid}

Apply the idea
\displaystyle \text{Total amount paid}\displaystyle =\displaystyle 90 + 9Add the GST and cost
\displaystyle =\displaystyle \$99
Idea summary

In Australia, Goods and Services Tax (GST) is a 10\% tax on most things you buy. That means you pay an extra 10\% of the cost.

\text{Cost of items} + \text{GST} = \text{Total amount paid}

Outcomes

MA3-7NA

compares, orders and calculates with fractions, decimals and percentages

What is Mathspace

About Mathspace