Chapter 8 - Percentage and its Applications — Class 7 Mathematics

Percentages, conversions, profit/loss, discount, simple interest, and tax

In this chapter, you will learn

  • Understand the concept of percentage as a fraction with denominator 100
  • Convert percentages to fractions and decimals, and vice versa
  • Calculate percentage of a quantity
  • Apply percentages to real-life scenarios like profit, loss, and discount
  • Calculate simple interest and tax
  • Solve word problems involving percentages

What is Percentage?

Percentage means 'per hundred'. It expresses a number as a fraction of 100.

Definition: Percentage (%) = (Part / Whole) × 100
Example: 25% means 25 out of 100 = 25/100 = 1/4

Why Percentages?

  • Easier to compare quantities (50% vs 0.5 vs 1/2 - all same)
  • Universal standard for expressing ratios
  • Used in discounts, interest, taxes, grades, surveys

Real-Life Applications:

  • Discount: "50% off" means pay only 50% of original price
  • Interest: Bank gives "8% per annum" on savings
  • Grades: Scored 85% means 85 marks out of 100
  • Tax: GST is 18% on goods

Exam Tip

Percentage is fundamental to real-world math. Always convert % to fraction or decimal for calculations.

Common Mistake

Confusing the part and the whole. Example: 20% of 50 is 10, not 20. (20/100 × 50 = 10)

Percentage to Fraction and Decimal Conversions

Percentage to Fraction: Remove % and put value over 100, then simplify.

Examples:

  • 25% = 25/100 = 1/4
  • 50% = 50/100 = 1/2
  • 75% = 75/100 = 3/4
  • 20% = 20/100 = 1/5

Percentage to Decimal: Divide percentage by 100 or move decimal 2 places left.

Examples:

  • 25% = 25 ÷ 100 = 0.25
  • 50% = 50 ÷ 100 = 0.5
  • 8% = 8 ÷ 100 = 0.08
  • 150% = 150 ÷ 100 = 1.5

Fraction to Percentage: Multiply by 100.

  • 1/4 = 0.25 = 25%
  • 3/5 = 0.6 = 60%

Exam Tip

Remember key percentages: 25%=1/4, 50%=1/2, 75%=3/4, 20%=1/5, 10%=1/10

Common Mistake

Moving decimal in wrong direction. 25% → 0.25 (left), NOT 2.5. Move left to convert % to decimal.

Percentage of a Quantity

Finding Percentage of a Number:

Percentage of = (Percentage / 100) × Quantity

Examples:

  • 20% of 50 = (20/100) × 50 = 0.2 × 50 = 10
  • 15% of 200 = (15/100) × 200 = 0.15 × 200 = 30
  • 5% of 1000 = (5/100) × 1000 = 50

Quick Method: 10% = Divide by 10. Then multiply to find other percentages.

  • 10% of 80 = 8
  • 20% of 80 = 2 × 8 = 16
  • 5% of 80 = 8 ÷ 2 = 4

Exam Tip

Find 10% first by dividing by 10. Then use it to calculate other percentages quickly.

Common Mistake

Writing 20% of 50 = 20 × 50. Wrong! It's (20/100) × 50 = 10, not 1000.

Profit, Loss, and Discount

Profit and Loss:

Profit = Selling Price - Cost Price (if positive)

Loss = Cost Price - Selling Price (if positive)

Profit % = (Profit / Cost Price) × 100

Loss % = (Loss / Cost Price) × 100

Example: Cost Rs. 100, Sell Rs. 120. Profit = 20. Profit% = (20/100) × 100 = 20%

Discount: Reduction in marked price.

Discount = Marked Price - Selling Price

Discount % = (Discount / Marked Price) × 100

Selling Price = Marked Price - Discount

Example: Marked Rs. 200, Discount 20%. Discount amount = (20/100) × 200 = 40. Selling Price = 200 - 40 = 160

Exam Tip

Always calculate percentages on the cost price for profit/loss. On marked price for discount.

Common Mistake

Calculating loss % on selling price instead of cost price. Loss % = (Loss / Cost Price) × 100, NOT denominator = SP.

Simple Interest and Tax

Simple Interest (SI): Interest earned on principal without compounding.

SI = (Principal × Rate × Time) / 100
Amount = Principal + SI

Example: Principal Rs. 1000, Rate 10% per annum, Time 2 years.

  • SI = (1000 × 10 × 2) / 100 = 200
  • Amount = 1000 + 200 = 1200

Tax: Percentage-based charge on goods/services.

Tax Amount = (Tax % / 100) × Original Price

Final Price = Original Price + Tax

Example: Item costs 100, GST is 18%. Tax = 18. Final = 118

Exam Tip

SI formula: Principal × Rate × Time / 100. Amount = P + SI. Read 'per annum' carefully (usually yearly).

Common Mistake

Confusing simple interest with amount. SI is only interest earned, not total amount. Amount = P + SI.

Chapter Summary

Percentage and its Applications connects math to real world. Key topics:

  • Percentage: Out of 100. Percent = Part/Whole × 100
  • Conversions: % ↔ Fraction ↔ Decimal
  • Percentage of: (P/100) × Quantity
  • Profit/Loss: Profit% = (Profit/CP) × 100
  • Discount: Discount% = (Discount/MP) × 100
  • Simple Interest: SI = (P × R × T) / 100
  • Tax: Final = Original + (Tax% × Original)

Exam Focus: Real-life problems on profit/loss, discount, SI, and tax. Always identify CP, MP, and what percentage to calculate on.

Ready to practice?