Compute a compound percentage: What is 5% of 50% of 500?
Aptitude
Percentage
Difficulty: Easy
Choose an option
Answer
Correct Answer: 12.5
Explanation
Introduction / Context:Nesting percentages is equivalent to multiplying the base by the product of the corresponding decimal fractions. This question checks order and fraction conversion accuracy.Given Data / Assumptions:
- Base number = 500.
- Percentages: first 50%, then 5% of that result.
Concept / Approach:Compute 50% of 500 first, then take 5% of that answer. Alternatively, multiply directly by 0.50 * 0.05 = 0.025 to get the same result in one step.Step-by-Step Solution:
50% of 500 = 0.50 * 500 = 250.5% of 250 = 0.05 * 250 = 12.5.Verification / Alternative check:Direct: 500 * (0.50 * 0.05) = 500 * 0.025 = 12.5. Both procedures agree.
Why Other Options Are Wrong:
- 25 and 6.25: These correspond to doubling or halving errors in one of the steps.
- 1.25: Off by a factor of 10; likely from using 0.005 instead of 0.05.
Common Pitfalls:Mixing up the order or misplacing the decimal point when converting percentages to decimals.
Final Answer:
12.5