We are easily able to convert percentages into decimals by dividing by 100. This is because percentage is defined as per 100.

**Example 1**

Convert 45% into a decimal.

We convert 45% into a decimal by dividing by 100.

When we are dividing by 100, we move the decimal place two places to the left.

Therefore, 45% as a decimal is 0.45.

**Example 2**

What is 6% as a decimal?

We divide by 100 to convert a percentage into a decimal and this gives us an answer of 0.06.

**Example 3**

Let’s have an example that has a non-integer percentage. What is 94.56% as a decimal?

Like before, we divide 94.56 by 100 and this gives us 0.9456 as our answer.

**Example 4**

What is 329.2% as a decimal? We obtain our answer by dividing by 100 and this gives us a value of 3.292.

A (positive) percentages that is less than 100% is going to give you an answer that is 0.

*something*. A percentage that is greater than 100% will give you an answer that is greater than 1.**Why is it Useful to Use Decimals?**

Having decimals rather than percentages is very useful especially when we are looking at interest earnt on saving and interest paid on borrowing/ loans. Let’s have an example where using a decimal is useful.

**Example 5**

I have placed £800 into a bank account that has an interest rate of 7% per year. I leave my money in the bank account for 1 year. What is the amount of interest that I earn on my savings?

The first stage to answer this question is to convert 7% into a decimal, which we do by dividing by 100, which gives us 0.07.

We now multiply the interest rate as a decimal (0.07) by the amount of money that I saved (£800).

The interest that I earnt from saving £800 for one year was £56.

We could have also found the answer by dividing 800 by 100 to give us the value of 1% and then multiplying by 7 because we want to know what 7% of the amount is rather than 1%. When we do this, we get the following working.

We could have also found the answer by dividing 800 by 100 to give us the value of 1% and then multiplying by 7 because we want to know what 7% of the amount is rather than 1%. When we do this, we get the following working.

At the moment, you may think that using decimals rather than percentages is a bit pointless, but we will see later in this section that using decimals rather than percentages is very useful especially when we are dealing with compound interest.