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).
Last updated: August 2026

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 ($a:b = c:d$).

1. Ratios and Simplification

A ratio comparing quantity $A$ to quantity $B$ is written as $A : B$, $\frac{A}{B}$, or '$A$ to $B$'. Because ratios represent relative comparisons, multiplying or dividing both terms by the same non-zero number produces an equivalent ratio.

Rules for Simplifying Ratios:

  1. Ensure all terms are expressed in the same unit of measurement before simplifying.
  2. Divide all terms by their Highest Common Factor (HCF).
  3. 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 $24 : 36$.
    • Find $\text{HCF}(24, 36) = 12$.
    • Divide both terms by $12$: $\frac{24}{12} : \frac{36}{12} = \mathbf{2 : 3}$.
  • Example 2 (Unit Conversion): Simplify $45 \text{ minutes} : 2 \text{ hours}$.
    • Convert hours to minutes: $2 \text{ hours} = 2 \times 60 = 120 \text{ minutes}$.
    • Ratio: $45 : 120$.
    • Divide by $\text{HCF}(45, 120) = 15$: $\frac{45}{15} : \frac{120}{15} = \mathbf{3 : 8}$.
  • Example 3 (Fractional Terms): Simplify $\frac{1}{2} : \frac{3}{4}$.
    • Multiply both terms by $\text{LCM}(2, 4) = 4$: $(\frac{1}{2} \times 4) : (\frac{3}{4} \times 4) = \mathbf{2 : 3}$.

2. Dividing Quantities in a Given Ratio

To divide a total quantity $Q$ into a ratio $a : b : c$, follow this reliable 3-step algorithm:

3-Step Ratio Division Algorithm:

  1. Calculate Total Ratio Parts: $\text{Total Parts} = a + b + c$.
  2. Determine Value per Part: $\text{Value of 1 Part} = \frac{Q}{\text{Total Parts}}$.
  3. Calculate Individual Shares: Multiply the value of 1 part by each ratio term ($a \times \text{Value}$, $b \times \text{Value}$, $c \times \text{Value}$).

Comprehensive Worked Example

Problem: Share $$450$ among Sarah, Marcus, and Devin in the ratio $2 : 3 : 4$.

Solution:

  • Step 1: Calculate total ratio parts: $2 + 3 + 4 = 9 \text{ parts}$.
  • Step 2: Find the value of $1$ part: $\text{Value of 1 Part} = \frac{$450}{9} = $50$.
  • Step 3: Calculate individual shares:
    • Sarah's share ($2$ parts) $= 2 \times $50 = \mathbf{$100}$.
    • Marcus's share ($3$ parts) $= 3 \times $50 = \mathbf{$150}$.
    • Devin's share ($4$ parts) $= 4 \times $50 = \mathbf{$200}$.
  • Verification Check: $$100 + $150 + $200 = $450$.

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 ($\frac{y}{x} = k$).

The Unitary Method Framework:

  1. Find Unit Rate: Divide the given total cost/amount by the given quantity to find the rate for $1$ single unit.
  2. Scale to Target: Multiply the single unit rate by the desired target quantity.

Worked Example: Unit Rate Calculation

Problem: If $8$ exercise books cost $$28.00$, determine the cost of $14$ exercise books.

  • Step 1 (Unit Rate): Cost of $1$ book $= \frac{$28.00}{8} = $3.50$.
  • Step 2 (Target Cost): Cost of $14$ books $= 14 \times $3.50 = \mathbf{$49.00}$.

Percentages & Commercial Arithmetic

1. Percentage Principles & Percentage Change

A percentage is a fraction expressed with a fixed denominator of $100$ (symbolised by $%$).

Basic Formulas:

  • Percentage of a Quantity: $\text{Value} = \frac{\text{Percentage}}{100} \times \text{Total Quantity}$.
  • Expressing $A$ as a Percentage of $B$: $\text{Percentage} = \frac{A}{B} \times 100%$.

Percentage Increase and Percentage Decrease

To measure percentage change relative to an original starting amount:

Percentage Change=Absolute Amount of ChangeOriginal Amount×100%\text{Percentage Change} = \frac{\text{Absolute Amount of Change}}{\text{Original Amount}} \times 100\%

Worked Examples

  • Example 1 (Percentage Increase): A store increases the price of a bag from $$80$ to $$96$. Find the percentage increase.
    • Increase $= $96 - $80 = $16$.
    • Percentage Increase $= \frac{$16}{$80} \times 100% = \frac{1}{5} \times 100% = \mathbf{20%}$.
  • Example 2 (Percentage Decrease): School enrolment drops from $500$ students to $425$ students. Find the percentage decrease.
    • Decrease $= 500 - 425 = 75$.
    • Percentage Decrease $= \frac{75}{500} \times 100% = \frac{15}{100} \times 100% = \mathbf{15%}$.

2. Commercial Math: Profit, Loss, Discount & Simple Interest

Commercial arithmetic applies percentage rules to business transactions and monetary management.

Commercial Definitions and Formulas Table

ConceptDefinitionKey Mathematical Formula
Cost Price (CP)Amount paid by a seller to acquire or produce an item.Base value ($100%$) for profit/loss calculations.
Selling Price (SP)Price at which the item is sold to a customer.$\text{SP} = \text{CP} + \text{Profit}$ or $\text{SP} = \text{CP} - \text{Loss}$
ProfitGained when $\text{SP} > \text{CP}$.$\text{Profit} = \text{SP} - \text{CP}$; $\text{Profit %} = \frac{\text{Profit}}{\text{CP}} \times 100%$
LossIncurred when $\text{CP} > \text{SP}$.$\text{Loss} = \text{CP} - \text{SP}$; $\text{Loss %} = \frac{\text{Loss}}{\text{CP}} \times 100%$
Marked Price (MP)Original tag price before any price reduction.Price tag value.
DiscountReduction granted on the marked price.$\text{Discount} = \frac{\text{Discount %}}{100} \times \text{MP}$; $\text{Sale Price} = \text{MP} - \text{Discount}$
Simple Interest (I)Fee paid for borrowing or investing money over time.$I = \frac{P \times R \times T}{100}$
Total Amount (A)Total accumulated value of principal plus interest.$A = P + I$

Step-by-Step Worked Commercial Problems

Problem 1 (Profit Percentage): A merchant purchases a bicycle for $$150.00$ and sells it for $$195.00$. Calculate his percentage profit.

  • Profit $= \text{SP} - \text{CP} = $195.00 - $150.00 = $45.00$.
  • Profit $% = \frac{$45.00}{$150.00} \times 100% = 0.30 \times 100% = \mathbf{30%}$.

Problem 2 (Discount & Sale Price): A pair of shoes marked at $$120.00$ is offered at a $15%$ discount during a clearance sale. Calculate the discount amount and the final sale price.

  • Discount Amount $= \frac{15}{100} \times $120.00 = 0.15 \times 120 = $18.00$.
  • Sale Price $= \text{MP} - \text{Discount} = $120.00 - $18.00 = \mathbf{$102.00}$.

Problem 3 (Simple Interest & Total Amount): Calculate the simple interest and total accumulated amount when $$2,400.00$ is deposited into a savings account at a rate of $5%$ per annum for $3$ years.

  • Identify variables: Principal $P = 2400$, Rate $R = 5$, Time $T = 3$.
  • Simple Interest $I = \frac{P \times R \times T}{100} = \frac{2400 \times 5 \times 3}{100} = 24 \times 15 = \mathbf{$360.00}$.
  • Total Accumulated Amount $A = P + I = $2,400.00 + $360.00 = \mathbf{$2,760.00}$.
Investment Growth Over Time ($2,400 at 5% p.a.)
Test Your Knowledge

Three friends share a prize of $450 in the ratio 2 : 3 : 4. How much is the largest share?

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Test Your Knowledge

If 8 exercise books cost $28.00, what is the total cost of 14 exercise books at the same rate?

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B
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D
Test Your Knowledge

A bicycle bought for $150 is sold for $195. What is the percentage profit gained on the purchase price?

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D
Test Your Knowledge

What is the total amount accumulated when $2,400 is invested at a simple interest rate of 5% per annum for 3 years?

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D