Step-by-step arithmetic breakdown
To calculate 18% of 500, convert the percentage into a decimal by dividing by 100, then multiply by the whole amount:
1. Convert percentage to fraction: 18 / 100 = 0.1800
2. Multiply by base number: 0.1800 × 500
3. Exact result: 90
Everyday real-world applications
- Retail & Discounts: If a product priced at $500 is discounted by 18%, your savings equal $90.
- Tax & Tips: A 18% service tip on a $500 restaurant bill equals exactly $90.
- Financial Yields: An investment yielding 18% on a principal of $500 produces $90 in interest.