what is 5 of $2500

Natashya

less than a minute read

·

25-12-2024

1

0

Share

What is 5% of $2500? A Simple Calculation Explained

Finding 5% of $2500 is a straightforward calculation with practical applications in various situations, from calculating sales tax to understanding discounts. This article will show you how to calculate this, explain the process, and provide examples.

Understanding Percentages

A percentage is a fraction of 100. 5% means 5 out of 100, or 5/100. To find a percentage of a number, we convert the percentage into a decimal and then multiply.

Calculating 5% of $2500

There are two main ways to calculate 5% of $2500:

Method 1: Decimal Conversion

1. Convert the percentage to a decimal: Divide 5 by 100: 5 ÷ 100 = 0.05
2. Multiply the decimal by the amount: 0.05 x $2500 = $125

Therefore, 5% of $2500 is $\boxed{125}.

Method 2: Fraction Conversion

1. Convert the percentage to a fraction: 5% is equal to 5/100.
2. Simplify the fraction (optional): 5/100 simplifies to 1/20.
3. Multiply the fraction by the amount: (1/20) x $2500 = $125

Again, we find that 5% of $2500 is $\boxed{125}.

Real-World Applications

Understanding how to calculate percentages is crucial in many everyday situations:

• Sales Tax: If you buy something for $2500 and the sales tax is 5%, you would pay an additional $125 in tax.
• Discounts: A 5% discount on a $2500 item would reduce the price by $125.
• Tips: Calculating a 5% tip on a $2500 bill would result in a $125 tip.
• Commission: If you earn a 5% commission on sales of $2500, your commission would be $125.

Conclusion

Calculating percentages is a fundamental skill with broad applications. As shown, 5% of $2500 is $125, regardless of whether you use the decimal or fraction method. Mastering this simple calculation can help you navigate various financial and everyday situations more effectively. Remember to always double-check your calculations to ensure accuracy.