Step-by-step arithmetic breakdown
To calculate 12% of 500, convert the percentage into a decimal by dividing by 100, then multiply by the whole amount:
1. Convert percentage to fraction: 12 / 100 = 0.1200
2. Multiply by base number: 0.1200 × 500
3. Exact result: 60
Everyday real-world applications
- Retail & Discounts: If a product priced at $500 is discounted by 12%, your savings equal $60.
- Tax & Tips: A 12% service tip on a $500 restaurant bill equals exactly $60.
- Financial Yields: An investment yielding 12% on a principal of $500 produces $60 in interest.