General Mathematics: Percent, Percentage, Inflation, and Markup/Markdown Applications

A comprehensive vocabulary review of percent, percentage, inflation rate, and markup/markdown terminology and formulas.

Percent

A mathematical representation that includes the percentage symbol ($\%$), must be accompanied by a specific number, and literally means "parts per hundred."

Percentage

A value written without the percentage symbol ($\%$) that may stand alone without being attached to a specific value, and is obtained by multiplying a number by a percent.

Percent Change

A value expressing the increase or decrease in an item's amount over time as a percentage of its original value.

Percent Increase

A positive change in value relative to the original amount.

Percent Decrease

A negative change in value relative to the original amount.

Inflation Rate

The percentage increase in the overall price level of goods and services over a defined period, typically one ($1$) year, which significantly affects income and general cost of living.

Markup

The difference between the original cost (or original selling price) and the new (higher) selling price.

Markup Amount Formula

The formula used to determine the price increase: $\text{Markup} = \text{new selling price} - \text{original selling price}$.

New Selling Price (Markup)

The increased selling price calculated using the formula: $\text{new selling price} = \text{original selling price} + \text{markup}$.

Original Selling Price (Markup)

The initial selling price before an increase, derived using the formula: $\text{original selling price} = \text{new selling price} - \text{markup}$.

Markup Rate

The percentage of increase relative to the original selling price, calculated as: $\text{Markup rate} = \frac{\text{markup}}{\text{original selling price}} \times 100$.

Markdown

The difference between the original selling price and the new (lower) selling price.

Markdown Amount Formula

The formula used to compute a price reduction: $\text{Markdown} = \text{original selling price} - \text{new selling price}$.

New Selling Price (Markdown)

The discounted price calculated using the formula: $\text{new selling price} = \text{original selling price} - \text{markdown}$.

Original Selling Price (Markdown)

The price of an item prior to a discount, determined by the formula: $\text{original selling price} = \text{new selling price} + \text{markdown}$.

Markdown Rate

The percentage of discount relative to the original selling price, computed using: $\text{Markdown rate} = \frac{\text{markdown}}{\text{original selling price}} \times 100$.