2.3 Ratios, Proportions & Percentages
Key Takeaways
A ratio compares two or more quantities of the same unit and can be simplified by dividing each term by their Highest Common Factor (HCF).
To divide a total quantity into a given ratio a:b, sum the ratio parts (a + b), calculate the value of one part (Total / (a + b)), and multiply by each part's ratio value.
Direct proportion indicates that two quantities scale at a constant rate; the unitary method solves proportion problems by finding the cost/quantity of a single unit first.
Percentage measures a rate per hundred; percentage increase or decrease is calculated as |New Value - Original Value| / Original Value * 100%.
Commercial applications include Profit (SP - CP), Loss (CP - SP), Discount (Marked Price - Sale Price), and Simple Interest (I = (P * R * T) / 100).
Ratios, Proportions & Unit Rate Methods
Core Concept: A ratio is a comparative expression matching two or more quantities of the same kind measured in identical units. A proportion is an equation stating that two ratios are equal ().
1. Ratios and Simplification
A ratio comparing quantity to quantity is written as , , or ' to '. Because ratios represent relative comparisons, multiplying or dividing both terms by the same non-zero number produces an equivalent ratio.
Rules for Simplifying Ratios:
- Ensure all terms are expressed in the same unit of measurement before simplifying.
- Divide all terms by their Highest Common Factor (HCF).
- If terms are fractions, multiply all terms by the Least Common Multiple (LCM) of their denominators to obtain whole number terms.
Worked Examples: Ratio Simplification
- Example 1 (Basic): Simplify .
- Find .
- Divide both terms by : .
- Example 2 (Unit Conversion): Simplify .
- Convert hours to minutes: .
- Ratio: .
- Divide by : .
- Example 3 (Fractional Terms): Simplify .
- Multiply both terms by : .
2. Dividing Quantities in a Given Ratio
To divide a total quantity into a ratio , follow this reliable 3-step algorithm:
3-Step Ratio Division Algorithm:
- Calculate Total Ratio Parts: .
- Determine Value per Part: .
- Calculate Individual Shares: Multiply the value of 1 part by each ratio term (, , ).
Comprehensive Worked Example
Problem: Share among Sarah, Marcus, and Devin in the ratio .
Solution:
- Step 1: Calculate total ratio parts: .
- Step 2: Find the value of part: .
- Step 3: Calculate individual shares:
- Sarah's share ( parts) .
- Marcus's share ( parts) .
- Devin's share ( parts) .
- Verification Check: .
3. Direct Proportion and the Unit Rate (Unitary) Method
Two variables are in direct proportion when an increase in one variable causes a proportional increase in the other, keeping their ratio constant ().
The Unitary Method Framework:
- Find Unit Rate: Divide the given total cost/amount by the given quantity to find the rate for single unit.
- Scale to Target: Multiply the single unit rate by the desired target quantity.
Worked Example: Unit Rate Calculation
Problem: If exercise books cost , determine the cost of exercise books.
- Step 1 (Unit Rate): Cost of book .
- Step 2 (Target Cost): Cost of books .
Percentages & Commercial Arithmetic
1. Percentage Principles & Percentage Change
A percentage is a fraction expressed with a fixed denominator of (symbolised by ).
Basic Formulas:
- Percentage of a Quantity: .
- Expressing as a Percentage of : .
Percentage Increase and Percentage Decrease
To measure percentage change relative to an original starting amount:
Worked Examples
- Example 1 (Percentage Increase): A store increases the price of a bag from to . Find the percentage increase.
- Increase .
- Percentage Increase .
- Example 2 (Percentage Decrease): School enrolment drops from students to students. Find the percentage decrease.
- Decrease .
- Percentage Decrease .
2. Commercial Math: Profit, Loss, Discount & Simple Interest
Commercial arithmetic applies percentage rules to business transactions and monetary management.
Commercial Definitions and Formulas Table
| Concept | Definition | Key Mathematical Formula |
|---|---|---|
| Cost Price (CP) | Amount paid by a seller to acquire or produce an item. | Base value () for profit/loss calculations. |
| Selling Price (SP) | Price at which the item is sold to a customer. | or |
| Profit | Gained when . | ; |
| Loss | Incurred when . | ; |
| Marked Price (MP) | Original tag price before any price reduction. | Price tag value. |
| Discount | Reduction granted on the marked price. | ; |
| Simple Interest (I) | Fee paid for borrowing or investing money over time. | |
| Total Amount (A) | Total accumulated value of principal plus interest. |
Step-by-Step Worked Commercial Problems
Problem 1 (Profit Percentage): A merchant purchases a bicycle for and sells it for . Calculate his percentage profit.
- Profit .
- Profit .
Problem 2 (Discount & Sale Price): A pair of shoes marked at is offered at a discount during a clearance sale. Calculate the discount amount and the final sale price.
- Discount Amount .
- Sale Price .
Problem 3 (Simple Interest & Total Amount): Calculate the simple interest and total accumulated amount when is deposited into a savings account at a rate of per annum for years.
- Identify variables: Principal , Rate , Time .
- Simple Interest .
- Total Accumulated Amount .
Three friends share a prize of $450 in the ratio 2 : 3 : 4. How much is the largest share?
$100
$200
$150
$250
If 8 exercise books cost $28.00, what is the total cost of 14 exercise books at the same rate?
$35.00
$42.00
$56.00
$49.00
A bicycle bought for $150 is sold for $195. What is the percentage profit gained on the purchase price?
30%
23%
45%
25%
What is the total amount accumulated when $2,400 is invested at a simple interest rate of 5% per annum for 3 years?
$360
$2,400
$2,760
$2,880
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