Step-by-step arithmetic breakdown
To calculate 5% of 1200, convert the percentage into a decimal by dividing by 100, then multiply by the whole amount:
1. Convert percentage to fraction: 5 / 100 = 0.0500
2. Multiply by base number: 0.0500 × 1200
3. Exact result: 60
Everyday real-world applications
- Retail & Discounts: If a product priced at $1200 is discounted by 5%, your savings equal $60.
- Tax & Tips: A 5% service tip on a $1200 restaurant bill equals exactly $60.
- Financial Yields: An investment yielding 5% on a principal of $1200 produces $60 in interest.