Work out 0.3% of £13,750
Give your answer in pounds (£).
The Correct Answer and Explanation is:
To calculate 0.3% of £13,750, follow these steps:
- Convert the Percentage to a Decimal: Percentages can be converted into decimals by dividing by 100. Thus, 0.3% becomes:
[
0.3\% = \frac{0.3}{100} = 0.003
] - Multiply by the Amount: Now, you can find 0.3% of £13,750 by multiplying the decimal by the total amount:
[
0.003 \times 13750
] - Perform the Calculation:
- Calculate ( 0.003 \times 13750 ):
[
0.003 \times 13750 = 41.25
]
Thus, 0.3% of £13,750 is £41.25.
Explanation
Calculating percentages is a fundamental skill in both personal finance and business settings, enabling individuals and organizations to evaluate portions of totals. In this case, we’re working with a percentage of a specific amount (£13,750) to determine how much 0.3% represents.
Percentages can be thought of as “parts per hundred.” To convert a percentage to a decimal, divide by 100. This transformation allows us to work with the number in calculations. In this example, 0.3% translates to 0.003 when expressed as a decimal. This step is crucial because it sets the foundation for further calculations.
Once we have the decimal representation, the next step is to multiply it by the total amount (£13,750). This multiplication gives us the portion of the total that corresponds to the percentage in question. Here, multiplying 0.003 by £13,750 reveals that £41.25 is the equivalent amount.
Understanding how to work with percentages is essential for budgeting, financial analysis, and various other applications, from calculating discounts to evaluating investment returns. This simple process of converting percentages into decimals and then multiplying can be applied across different scenarios, making it a versatile tool in mathematics and finance.