## What do you mean by Percentage?

- Percent is derived from Latin word ‘per centum’ which means ‘per hundred.
- Percentage is a way of comparing quantities.
- Percentages are basically numerators of fractions with denominator 100.
- Percent is represented by the symbol – ‘%’.

Ex- 1% means 1 out of 100 or one hundredth.

1% = 1/100 = 0.001

**Interpreting Percentages**

**Example – What do you mean by this statement. **

Let say – “*Raj saves 25% of his income.*

**Interpretation** – It means 25 parts out of 100, or it means Raj is saving 25 rupees out of every 100 rupees that he earns.

### Important Formulas

**1. % Change – (Increase or decrease)**

℅change = [(Final value – Initial Value)/ Initial Value] × 100

- Remember Percentage change is always calculated wrt the initial value. So, take initial value as reference value for finding %change.
- Note- Always take ‘+’ for increase and ‘-‘ for decrease.

**2. If price of an article increases or decreases by ‘x℅’, then reduction in consumption, and expenditure remaining same.**

[(100 × x)/(100 + x)] ℅

**3. If price of an article decreases by ‘x℅’, then reduction in consumption, and expenditure remaining same**

[(100 × x)/(100 – x)] ℅