Step-by-step arithmetic breakdown
To calculate 20% of 2500, convert the percentage into a decimal by dividing by 100, then multiply by the whole amount:
1. Convert percentage to fraction: 20 / 100 = 0.2000
2. Multiply by base number: 0.2000 × 2500
3. Exact result: 500
Everyday real-world applications
- Retail & Discounts: If a product priced at $2500 is discounted by 20%, your savings equal $500.
- Tax & Tips: A 20% service tip on a $2500 restaurant bill equals exactly $500.
- Financial Yields: An investment yielding 20% on a principal of $2500 produces $500 in interest.