ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -To change a percent to a decimal we divide by 100. This is the same as moving the decimal point two places to the left. For example, 15% is equivalent to the decimal 0.15. Notice that dividing by 100 moves the decimal point two places to the left.

Detailed explanation-2: -To convert a given percentage rate to decimal form, you simply move the decimal point two places to the left. In our example, when interest is compounded annually, we have an interest rate of 1.7%. To convert to decimal form, we move the decimal two places to the left to get 0.017. Thus, r = 0.017.

Detailed explanation-3: -Generally in the lending industry, computed amounts (interest, fees, costs, and so on) are rounded to the second decimal place.

Detailed explanation-4: -With more complex numbers, you’ll still just move the decimal over two places. Here are a few more examples: 100% = 1. 150% = 1.5.