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Percentages

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sam182 | 14:45 Fri 07th Jan 2011 | Personal Finance
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whats 15% off £40
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£34
15% of £40 is £6
£6 is 15% therefore the answer would be £34
Shops, TV news items, politicians, newspaper reports, etc. quote percentages all the time but the sad fact is that a significant proportion of the population doesn't have much idea as to what the figures mean.
factor30, I am sure it is the minority that doesn't understand per centages.
It worries me that a considerable number don't seem to understand the difference between off and of; have and of.
I'm not so sure, hc4361, but it may be a matter of semantics.

For example the attached research paper showed that 47% of 16-65 year olds were below Numeracy Level 1. An example of Level 1 would be the ability to work out simple percentages.
http://www.bbc.co.uk/...t_of_low_numeracy.pdf

Okay, 47% is indeed a minority, but I think it is fair to describe it as a 'significant proportion'. When you add in pensioners and teenagers the figure may indeed be nearer 50%.

My experience from teaching is that around half of school leavers and adults cannot work out something such as the price of a £40 item after the price is reduced by 15%. And I reckon nearer three quarters could not work out the original price of an item which is now priced at £44 after a 20% reduction.
Sam is working off a pc or a desktop - I assume that it has a calculator application

"Use it rather than cluttering up the threads here," is my advice
I agree with factor, a 'fair' number of adults may be able to work out OP's question but not the examples factor quoted.
The problem is though if somebody doesn't understand the concept of what they are doing then a calculator won't help. (besides, it would be quicker to work out the OP in your head than load the calculator)
What do you mean, can't understand percentages? 50% of the population can't understand them but the other 60% are very competent.
I was saving a variation of that one for later, gingejbee, but you've beaten me to it!
Given that 15% 'off' £40 is £34 and that 15% 'of' £40 is £6, I don't think it really matters - in this case - how the word was spelt, what it meant or whether it was just a typo.

And given that Sam's question has been answered three times over, I don't feel quite so guilty about wandering off topic with the others and agreeing with Factor and HC. Too many people have no idea what a percentage means, let alone work it out. Therefore the advice to use a calculator is pretty pointless if you don't have any concept of the result you're aiming for.

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