what is 5 of $50

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23-11-2024

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What is 5% of $50? A Simple Calculation Explained

Calculating percentages can seem daunting, but it's a fundamental skill with many real-world applications, from figuring out sales tax to understanding discounts. This article will clearly explain how to calculate 5% of $50, and provide you with the tools to tackle similar percentage problems.

Understanding Percentages

A percentage is a fraction of 100. So, 5% means 5 out of every 100. To calculate a percentage of a number, you essentially find that fraction of the number.

Method 1: Using Decimal Conversion

This is perhaps the most straightforward method. First, convert the percentage to a decimal by dividing by 100:

5% ÷ 100 = 0.05

Then, multiply the decimal by the original amount:

0.05 x $50 = $2.50

Therefore, 5% of $50 is $\boxed{2.50}.

Method 2: Using Fractions

You can also solve this using fractions. Remember that 5% is equivalent to the fraction 5/100, which simplifies to 1/20.

So, to find 5% of $50, you calculate:

(1/20) x $50 = $50 ÷ 20 = $2.50

Again, we arrive at the answer: 5% of $50 is $\boxed{2.50}.

Real-World Applications

Understanding how to calculate percentages is essential in many daily situations. For example:

• Sales and Discounts: If a store offers a 5% discount on a $50 item, you'll save $2.50.
• Taxes: Calculating sales tax is another common application of percentages.
• Tips: Figuring out a tip at a restaurant often involves calculating a percentage of the bill.
• Interest: Understanding interest rates on loans or savings accounts relies on percentage calculations.

Practicing Percentage Calculations

The more you practice calculating percentages, the easier it will become. Try working through some additional examples to build your confidence. You can use either the decimal conversion or fraction method; choose whichever feels more comfortable for you.

Conclusion

Calculating 5% of $50 is a simple process, resulting in an answer of $2.50. Mastering this fundamental skill will equip you to handle a wide range of percentage-related problems in your everyday life. Remember, practice makes perfect!