Step-by-step arithmetic breakdown
To calculate 40% of 500, convert the percentage into a decimal by dividing by 100, then multiply by the whole amount:
1. Convert percentage to fraction: 40 / 100 = 0.4000
2. Multiply by base number: 0.4000 × 500
3. Exact result: 200
Everyday real-world applications
- Retail & Discounts: If a product priced at $500 is discounted by 40%, your savings equal $200.
- Tax & Tips: A 40% service tip on a $500 restaurant bill equals exactly $200.
- Financial Yields: An investment yielding 40% on a principal of $500 produces $200 in interest.