College Math

2.3 Change in Percentage We can find the percentage by which something has increased or decreased. The percentage change can be found out by the following formula: ℎ = ∗ 100% For instance, Mrs. and Mr. Wilson purchased a property for $150,000 in the year 2010. It is now valued at $355,000. Calculate the percent increase. In this case, the original cost would be $150,000 and the increase in the value would be the difference between both the amounts, that is $205,000 (355,000- 150,000). The percentage increase would be: = 205000 150000 ∗ 100% = 136.67% Whenever the price falls, it shows percentage decrease, as in cases of depreciation of assets. 2.4 Profits and Losses The concept of percentage is also used in calculating the profits and losses on different items. Cost price is the price at which the item is acquired. Selling price is the price at which the acquired item is sold to the customers. The difference between selling price and cost price is the profit . In the case where the cost price is higher than the selling price, loss is incurred. We can also calculate the profit percentage and loss percentage, by dividing the profit/loss by the cost price. These formulae can be written as follows: Profit = Selling Price – Cost Price Loss = Cost Price – Selling Price % = ∗ 100% % = ∗ 100% Let us solve an example to understand the concept well. Suppose Emily purchased a piece of furniture for $25 and wishes to sell the same piece to her friend making a profit of 5%. For how much should she sell it to her friend? In this case, Cost Price = $25 Profit = 5% of 25 = 5/100*25 = 1.25 Selling price = cost price + profit

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