In order to find the solution to this problem easily it is important to understand what a percentage really is.
One Percent (1%) means 1 unit for every 100 units. Two percent means 2 for every 100.
Realizing this, consider what 1% of 200 is. If for one block of 100, 1% is equal to 1, and we have two blocks of 100, then 1% of 200 must be equal to 2. We have multiplied the basic percentage by 2.
Coming to the main problem here: What is 5% of 400? We can break 400 down into 4 blocks of 100, and take 5% of 100.
5% of 100 is 5
Take 5 and multiply by 4 blocks of 100
By applying the basic principles we have learned, we get an answer of:
20 dollars as 5% of 400 dollars
Hopefully I've explained it so you can answer problems like this in the future.
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