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PercentagesA percentage is a number out of one hundred (Klerk, 2007, p. 96)Taxes are expressed as percentages. e.g Goods & Services Tax (GST) = 10%

(Klerk, 2007, p.96)

Lets work through an example:Alex is purchasing a new car. The base model price is $32,000 excluding GST. He also wants to add the following options/accessories:Automatic transmission$2 500 ex gstAirconditioning$1 500 ex gstWindow Tinting$370 ex gstTow bar$550 ex gst

Calculate the cost of each of the following vehicles after GST of 10% has been added.

The above example shows us that the final price represents 110%.This can be applied to everyday situations and we can calculate the value of the GST by dividing the final price of an item by 11.

Lets look at an example:Michael has just purchased a vehicle for $46 500 incl GST. He is applying for a loan and wants to pay a deposit that is equivalent to the GST on the vehicle.

How much deposit will Michael have to pay?Working backwards to find the original amount following a percentage increase or decrease is called a reverse percentage. Lets take a look at a couple of examples.

Lets now have a look at calculating the original amount following a % decrease?

Now try the Percentages Worksheet.Use the Percentages calculator and the solutions page to check your answers.This completes our lesson on Percentages.

There are more exercises on percentages on the Test Yourself page.