What is the value of 5% of 40,000?

Introduction / Context:
This question checks your comfort level with calculating a small percentage of a relatively large number. Finding 5% of a value is an extremely common operation in real life situations such as discounts, commissions, interest and tax calculations. A clear, quick method for this kind of problem is very useful during competitive exams where time is limited.

Given Data / Assumptions:

The base amount is 40,000.

We must find 5% of 40,000.

No additional charges, changes or extra conditions are involved.

The answer should be a single exact number.

Concept / Approach:
Conceptually, 5% means 5 out of every 100 parts. The general formula is value = (percentage / 100) * base. Another fast mental method for 5% is to first find 10% of the number (which is simple) and then take half of that, because 5% is half of 10%. Both methods are correct and lead to the same result. Practising both builds flexibility and speed in percentage problems.

Step-by-Step Solution:
We want 5% of 40,000.Using the formula: value = (5 / 100) * 40,000.Compute 5 / 100 = 0.05.So value = 0.05 * 40,000.0.05 * 40,000 = 2,000.Therefore, 5% of 40,000 is 2,000.

Verification / Alternative check:
Using the 10% method: First find 10% of 40,000. Ten percent of any number is that number divided by 10, so 10% of 40,000 is 4,000. Now, since 5% is half of 10%, take half of 4,000. Half of 4,000 is 2,000. This again confirms that 5% of 40,000 equals 2,000. Agreement of both methods verifies the correctness of the result.

Why Other Options Are Wrong:

20,000 corresponds to 50% of 40,000, not 5%, so it is ten times too large.

200 corresponds to only 0.5% of 40,000 and is much smaller than the correct value.

20 is extremely small and corresponds to 0.05% of 40,000.

4,000 is 10% of 40,000, not 5%, so it is double the correct answer.

Common Pitfalls:
A common error is misplacing the decimal point when converting percent to a decimal. Some learners treat 5% as 5 instead of 0.05 and thus multiply incorrectly. Others confuse 5% with 50% or 0.5%, leading to large magnitude errors. To avoid these mistakes, remember that you always divide the percentage by 100 to convert it into a factor for multiplication.

Final Answer:
The value of 5% of 40,000 is 2000.