Percentages Percentages — VAT 1 Valued Added

Percentages

Percentages - VAT 1. Valued Added Tax (VAT) is a tax that is charged at a rate of 17½ of an items initial cost. Calculate the VAT that is charged on an item with an initial cost of £ 120 17½% = 10% + 5% + 2½ 10% of 120 = 12 5% of 120 = 6 2½% of 120 = 3 17½% of £ 120 = 12 + 6 + 3 = £ 21

Percentages – Increase and Decrease 2. Calculate the percentage change when: a. Bill’s weekly wages increase from £ 210 to £ 250 b. The price of house is reduced from £ 245000 to £ 225000 a. Percentage Change = (new – old) ÷ old x 100 (250 – 210) ÷ 210 x 100 = 19% b) (225000 – 245000) ÷ 245000 x 100 = -8. 2% The minus sign means that it is a decrease – a reduction of 8. 2%

3. The total number of students at a school is 1280 and 164 of the students are in Year 7. Express 164 as a percentage of 1280 Give your answer correct to 2 significant figures. 164/1280 as a decimal is 0. 128125 As a percentage = 13% to 2 s. f.

In a sale, normal prices are reduced by 15%. Calculate the sale price of a shirt that had an normal price £ 12. 75. Change 15% into a decimal 0. 15 Subtract this from 1 1 – 0. 15 = 0. 85 12. 75 x 0. 85 = £ 10. 84

In a sale, normal prices are reduced by 35%. The sale price of a TV is £ 150. Calculate its normal price. Normal Price x 0. 65 = 150 Normal Price = 150 ÷ 0. 65 Normal Price = £ 230. 76

In 2004, the population of the European Community was 376 million. By 2005, the population of the European Community was 451 million. Work out the percentage increase in population. Give your answer correct to 1 decimal place. Percent Increase = (new – old) ÷ old x 100 Percent Increase = (451 – 376) ÷ 376 x 100 Percentage Increase = 19. 9%

Martin buys a watch for £ 24. He sells the watch and makes a profit of 15%. Work out how much he sells the watch for. To find an increase of 15% Change 15% into a decimal x 0. 15 Add this onto one 1. 15 Multiply by this number 24 x 1. 15 = £ 27. 60