Current sales are $80,000 per year. Advertising expense is $6,500 per year. The owner believes an increase of 10% in advertising over the next 3 years will result in an increase of $8,000 in annual sales. What is the net present value of his decision if he uses 4% as his interest rate?

Answers

Answer 1

Therefore, the net present value of the owner's decision to increase advertising expenditure by 10% over the next 3 years is $42,821.97

To calculate the net present value (NPV) of the decision, we need to first determine the additional sales that will result from increasing the advertising expenditure by 10% over the next 3 years.

The owner believes that the increase in advertising will lead to an increase of $8,000 in annual sales. Therefore, the additional sales over the next 3 years will be:

$8,000 × 3 = $24,000

We can then use the following formula to calculate the net present value:

NPV = (Present Value of Cash Inflows) - (Present Value of Cash Outflows)

In this case, the cash outflows are the additional advertising expenses incurred over the next 3 years. The present value of these cash outflows can be calculated using the following formula:

Present Value = Cash Outflow / (1 + Interest Rate)^n

Where n is the number of years from the present, and the interest rate is the discount rate used to calculate the present value.

In this case, the additional advertising expenses over the next 3 years will be:

$6,500 × 1.1 = $8,143.75

Using an interest rate of 4%, the present value of the cash outflows can be calculated as follows:

Present Value of Cash Outflows = $8,143.75 / (1 + 0.04) + $8,143.75 / (1 + 0.04)^2 + $8,143.75 / (1 + 0.04)^3

= $22,140.39

The cash inflows are the additional sales resulting from the increase in advertising expenditure. We need to calculate the present value of these cash inflows using the same formula as above:

Present Value of Cash Inflows = $24,000 / (1 + 0.04)^1 + $24,000 / (1 + 0.04)^2 + $24,000 / (1 + 0.04)^3

= $64,962.36

Finally, we can calculate the net present value as follows:

NPV = $64,962.36 - $22,140.39

= $42,821.97

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Related Questions

The number of seats a table can have is usually expressed as the number and the word "top". You can have 17, 4-top tables, 28, 2-top tables, 15, 6-top tables and 5, 10-top tables. How many can your restaurant seat?


A) 244 seats

B) 264 seats

C) 288 seats

D) None of the above

Answers

Answer:

B) 264 seats

Explanation:

'Top' is the number of seats per table.

17 tables with 4 seats will have

17 x 4 = 68 people

28 2-top tables

28 x 2 =56 seats

15, 6-top tables

15 x 6 =90 seats

5, 10-top tables.

5x10 = 50 seats

Total number of people who can seat

= 68 + 56 +90 +50

=264 seats

Bagel, Inc. issued 50,000 shares of the 100,000 authorized. It has since repurchased 5,000 of its shares. The number of shares outstanding equals ______ shares.

Answers

Based on the information given the number of shares outstanding equals 45,000 shares.

Using this formula

Shares outstanding=Issued shares-Shares repurchased

Where:

Issued shares=50,000 shares

Shares repurchased=5,000 shares

Let plug in the formula

Shares outstanding=50,000-5,000

Shares outstanding=45,000 shares

Inconclusion the number of shares outstanding equals 45,000 shares.

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The coordinates of point T are ​(​0,​5). The midpoint of is ​(6​,​-4). Find the coordinates of point S.

Answers

Answer:

Point S is at (10,-11) :)

Explanation:

a government minister in country X recently said: "the secondary sector of the industry will always be more important than the tertiary sector to our economy." do you agree with this view? justify your answer.

Answers

Answer:

Explanations yes i agree with this view since raw material are must for every sector. If there is no product, then service sector will have no work.

tertiary sector provide services for primary and secondary sector also secondary sector depent on pramiry sectorfor the input

What is the common term for the endline in soccer?

Answers

it is the goal line that is the common term for endline

Answer:

Card is the common term for the endline in soccer.

A company reported that its bonds with a par value of $50,000 and a carrying value of $59,000 are retired for $62,400 cash, resulting in a loss of $3,400. the amount to be reported under cash flows from financing activities is:

Answers

Answer:

The answer is ($62,400)

Explanation:

Cash flow only deals with cash. Statement of Cash flow is one of the three Financial statements and this records ONLY the cash that is coming in and out of the business

The company coughed out $62,400 cash. This is the money that will be recorded under cash flows from financing activities and not the $59,000.

So the narration will be:

Cash for retiring bonds.......($62,400)


Listed below are year-end account balances ($ in millions) taken from the records of Symphony Stores.

Debit Credit
Accounts receivable-trade 696
Building and equipment 932
Cash-checking 39
Interest receivable 34
Inventory 34
Land 152
Notes receivable (long-term) 479
Petty cash fund 8
Prepaid rent 40
Supplies 9
Trademark 51
Accounts payable-trade 670
Accumulated depreciation 77
Additional paid-in capital 482
Allowance for uncollectible accounts 16
Cash dividends payable 22
Common stock, at par 11
Income tax payable 60
Notes payable (long-term) 814
Retained earnings 298
Deferred revenues 24
TOTALS 2,474 2,474
a) What would Symphony report as total shareholders' equity?

b) What would Symphony report as total current assets?

c) What would Symphony report as total assets?

Answers

a) Symphony would report total shareholders' equity as $704 million.

b) Symphony would report total current assets as $825 million.

c) Symphony would report total assets as $2,474 million.

a) To calculate total shareholders' equity, we need to subtract total liabilities from total assets. From the provided year-end account balances, we can see that total assets amount to $2,474 million. The total liabilities can be obtained by adding the credit balances and deducting the debit balances from the accounts related to liabilities and equity. Total liabilities amount to $1,770 million (Calculated as: $670 + $22 + $60 + $814 + $16 + $77). Finally, we can calculate shareholders' equity by subtracting total liabilities from total assets: $2,474 million - $1,770 million = $704 million.

b) Total current assets consist of cash and other assets that are expected to be converted into cash or used up within one operating cycle, typically a year. From the given account balances, we can identify the following current assets: Accounts receivable-trade ($696 million), Cash-checking ($39 million), Interest receivable ($34 million), Inventory ($34 million), Petty cash fund ($8 million), Prepaid rent ($40 million), and Supplies ($9 million). Adding up these amounts, we get $860 million as the total current assets. However, we need to exclude the Deferred revenues account ($24 million) from the calculation as it represents a liability. Therefore, Symphony would report total current assets as $860 million - $24 million = $836 million.

c) Total assets are the sum of all the resources owned by Symphony. We have already calculated the total assets as $2,474 million in the main answer by adding up the debit balances of all accounts.

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35 points!!!111

Outlining involves arranging topics or ideas in relationship to each other. Please select the best answer from the choices provided T F

Answers

Answer:

TRUE

Explanation:

Answer:

Honestly, you're lying about the 35 points thing...

But the answer is TRUE

Air max 270's or Jordan 1 Mid's?

Answers

Air max 270's

they make me taller than Jordan 1 Mid's, and since im a short dude, I lowkey need that extra inch.

at the most recent balance sheet date, nike's largest current asset is: a. inventories. b. cash. c. accounts receivable (net). d. accounts payable.

Answers

At the most recent balance sheet date, Nike's largest current asset is: a. inventories.

Based on the terms given, the largest current asset of Nike at the most recent balance sheet date would not be "accounts payable" as it is a payable and not an asset.

The correct options to choose from are a) inventories, b) cash, and c) accounts receivable (net).

Without access to Nike's balance sheet, it is difficult to determine which of these options is the largest current asset.

However, historically, Nike has had a large inventory and cash position, so it is possible that one of these options could be the largest current asset on their balance sheet.

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Imagine that instead of hiring each assitant right away in the hiring assistant problem. we wait until the end to hire the best one. what are the best-, worse- and average-case costs in this case? explain.

Answers

Imagine that instead of hiring each assistant proper away withinside the hiring assistant problem. we wait till the cease to lease the quality one. what is the quality-, worse- and average-care costs on this case.

There are some assumptions that we are able to make.

Worst case: Every assistant you interview subsequent is higher than the ultimate candidate. So, you need to pass until the cease. The aspect is you interviewed until the cease N, and also you needed to make a contrast with the N-1 interviewee.

So, your complexity can be N*(N-1) = O(N^2)

Best case: The first actual candidate you interviewed became out to be the quality candidate. Here you simply examine with every other candidate if they're higher than the first candidate or not.

So, your complexity, on this case, can be O(N)

Average case: In this case, we're creating a contrast with different candidates. In this case, as well, your complexity could be O(N^2).

For higher clarity, what you may do is navigate grade by grade the subsequent pseudocode:

best_candidate_index = 0

for candidate in range(number_of_interviewee)

do interview candidate

if candidate is higher than best_candidate_index

best_candidate_index = candidate

lease best_candidate_index

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“Equivalent income in the city you are moving to” and the “percentage decrease you can take in your salary to still maintain your standard of living”. What do these two sentences mean?

Answers

Answer:

The two sentences mean that the "Equivalent income" is the income you can receive in the new city.  The "percentage decrease" in salary to maintain your current living standard is the rate of decrease in salary.

Explanation:

For example, if your equivalent income in the new city is $45,000 and your current income is $50,000, and the percentage decrease in salary is 40%, it implies that your living standard may be below $45,000.  

Thus, at a salary of $45,000, you can still maintain your living standard with a salary of $30,000 ($50,000 x (1 - 0.4).

Explain the project planning steps​

Answers

Set goals

Prioritize tasks

Create a schedule

Communicate.

intellectual property rights (ipr) cover which of the following? a. systems b. trademarks c. ideas d. methods

Answers

Intellectual property rights (IPR) cover patents, trademarks, copyrights, and trade secrets. These rights are designed to provide creators with legal protections that prevent others from using or stealing their intellectual property without permission or compensation. The correct answer is option b.

Four major categories of intellectual property (IP) are distinguished in this context, each of which has a distinct collection of IPRs:

1. Patents: These are awarded to innovators who develop novel and inventive methods, items, or devices. With the use of a patent, an inventor is given the only authority to bar others from making, offering for sale, or making use of their creation. Methods, systems, and machinery are covered under patents.

2. Brand names: A trademark is a designation that identifies a good or service and sets it apart from those of rivals. By forbidding others from using the same mark or one that could confuse customers, it offers brand protection. Signs, logos, and names are all covered by trademarks.

3. Copyrights: These safeguard original literary, musical, and other creative works and the arts. For a set amount of time, they grant artists the sole right to reproduce, distribute, perform, or exhibit their works. Creativity is protected by copyrights.

4. Business secrets They are proprietary and confidential knowledge that gives a business an edge over rivals. Formulas, procedures, or designs might all be considered trade secrets. Non-disclosure agreements (NDAs) and confidentiality provisions in employment contracts serve to safeguard the information. Private data is covered by trade secrets.

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Question 5 of 10
When gathering information, which of the following tasks might you need to
perform?
A. Apply standards, such as measures of quality, beauty, usefulness,
or ethics
B. Seek out ideas from others and share your own ideas
C. Study objects, conduct lijsts, research written materials, and ask
questions
D. Fill out forms, follow procedures, and apply math and science
SEN

Answers

I’m pretty sure the answer is option C

in a purely competitive industry, an optimal allocation of scarce resources occurs when:

Answers

In a purely competitive industry, an optimal allocation of scarce resources occurs when the market reaches equilibrium, where supply and demand intersect and maximize social welfare.

In a purely competitive industry, the market is characterized by a large number of buyers and sellers, homogeneous products, perfect information, and ease of entry and exit. The optimal allocation of scarce resources occurs when the market reaches equilibrium. At equilibrium, the quantity supplied by producers matches the quantity demanded by consumers, and the market price is determined.

At equilibrium, there is no excess supply or demand, and resources are allocated efficiently. Producers produce the quantity that maximizes their profits, taking into account their costs of production, and consumers purchase the quantity that maximizes their utility, considering the market price. This equilibrium point represents the optimal allocation of scarce resources because it maximizes social welfare, ensuring that goods and services are produced and consumed in the most efficient manner possible.

In a purely competitive industry, competition ensures that resources are allocated efficiently and that no participant in the market can individually influence the market price or quantity. This leads to an optimal allocation of scarce resources that benefits both producers and consumers, promoting overall economic welfare.

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according to the world bank, what percentage of sub-saharan africans lived on less than $2 a day?

Answers

According to the World Bank, in 2018, 43.6% of Sub-Saharan Africans were living on less than $2 a day.

This means that more than 400 million people in the region were living in extreme poverty. It is important to note that poverty rates vary widely across different countries and regions within Sub-Saharan Africa, with some countries experiencing much higher poverty rates than others.

Additionally, poverty rates have been gradually decreasing in the region over the past few decades, but progress has been slow and uneven.

It is important to note that this figure may have changed in the years since the report was published, and ongoing monitoring and evaluation are needed to assess progress towards poverty reduction goals.

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The coursework taken at a _____ is focused on specific career skills and trades and does not generally require further academic studies.


vocational school

private school

university

college

Answers

Vocational school is the answer

Answer:

Vocational school

Explanation:

Edge 2021

organizational learning works best when there is integrated thinking and acting at all levels of the organization, according to peter senge.

Answers

According to Peter Senge, it is a true statement that an organizational learning works best when there is integrated thinking and acting at all levels of the organization.

Who Is Peter Senge?

The Journal of Business Strategy called Peter Senge a 'Strategist of the Century, he Senge is an advocate for decentralizing leadership so all people in an organization can work together towards a common goal. He os is a proponent for what has become known as learning organizations, which are predicated on the principles of system thinking.

In his book "Fifth Discipline:, he (Senge) defined an learning organizations as those organizations that encourage adaptive and generative learning, encouraging their employees to think outside the box and work in conjunction with other employees to find the best answer to any problem.

He said there are five characteristics of a learning organization which includes a personal mastery, or how the individual looks at the world, a mental models, or an individual's deeply ingrained assumptions, a shared vision, which encourages experimentation and innovation among multiple members, a team learning, or more than one person acting together; two heads are better than one and systems thinking, looking at the whole picture rather than the individual problem.

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What is the net present value of a project that has an initial cash outflow of $7,670 and cash inflows of $1,280 in Year 1, $6,980 in Year 3, and $2,750 in Year 4

Answers

The project has a positive net present value (NPV) of $1,925.47 at a discount rate of 10%, indicating its potential profitability.

The net present value (NPV) of a project is a financial calculation used to determine the profitability of an investment. It takes into account the time value of money by discounting the future cash inflows and outflows to their present value.

To calculate the net present value of this project, we need to discount each cash flow back to its present value and then sum them up. The discount rate represents the minimum acceptable rate of return for the project and accounts for the risk and opportunity costs associated with the investment.

In this case, let's assume a discount rate of 10%. We can calculate the present value of each cash flow using the formula:

PV = CF / (1 + r)^n

Where PV is the present value, CF is the cash flow, r is the discount rate, and n is the time period.

Using this formula, we can calculate the present value of each cash flow:

Year 0 (initial cash outflow): $7,670
Year 1 (cash inflow): $1,280 / (1 + 0.10)^1 = $1,163.64
Year 3 (cash inflow): $6,980 / (1 + 0.10)^3 = $5,459.26
Year 4 (cash inflow): $2,750 / (1 + 0.10)^4 = $1,972.57

Now, we can sum up the present values of all cash flows:

NPV = - $7,670 + $1,163.64 + $5,459.26 + $1,972.57 = $1,925.47

Therefore, the net present value of this project, assuming a discount rate of 10%, is $1,925.47. This positive NPV suggests that the project is expected to generate a return higher than the discount rate, making it potentially profitable.

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Name 3 target market (customer group) PLEASE HELP

Answers

Answer:

walmart, publix, and aldes

Explanation:

Explanation:

These include gender, age, income levels, race, education, religion, marital status, and geographic location. Consumers that fall into these groups tend to value the same products and services, which is why narrowing down these segments is one of the most important factors to determine target markets

list out the tasks of an overseer.​

Answers

Answer:

Mentor, coach, monitor and supervise communities throughout the shelter construction process. Provide technical assistance to households involved in shelter construction. Coordinate with counterparts in other PIN's areas of operation, ensuring exchange of lessons learnt and good practices

Explanation:

Natalie books an appointment at a hair salon to get a haircut, color, and a blow dry. When it is time for her appointment, she shows up at the salon and receives these services from a stylist. This scenario illustrates that services

Answers

The scenario where Natalie books an appointment and shows up at the salon to receives the services illustrates that services are usually distributed through direct marketing channels.

Direct marketing channel refers to the sales process which directly involves the seller and end buyer without the service of intermediary.

In a direct marketing channel, the service of intermediaries (such as retailers, agent, wholesalers) are not prioritize

The medium which are most perfect for direct marketing channel includes through internet, digital media etc

In the question, Natalie books an appointment with the stylist through her phone without the service of intermediaries.

Therefore, the scenario best illustrates that services are usually distributed through direct marketing channels.

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Insurance: An insurance company sells a 1 -year term life insurance policy to an 83 -year-old woman. The woman pays a premium of $4000. If she dies within 1 year, the company will pay $90,000 to her beneficiary. According to the U.S. Centers for Disease Control and Prevention, the probability that an 83 -year-old Noman will be ative 1 year later is 0,9561 . Let X be the profit made by the insurance company. Part: 0/2 Part 1 of 2 (a) Find the probability distribution, The probability distribution is

Answers

Given,An insurance company sells a 1-year term life insurance policy to an 83-year-old woman. The woman pays a premium of $4000. If she dies within 1 year, the company will pay $90,000 to her beneficiary. Let X be the profit made by the insurance company.

The profit made by the insurance company X is equal to the difference between the premium collected and the payout made.Profit (X) = Payout - Premium collectedNow, we need to find the probability distribution of profit made by the insurance company in one year, which is a random variable, given that the probability that an 83-year-old woman will be alive after one year is 0.9561.Let us calculate the probability of the woman's death in one year.

The probability of the woman's death in one year is given by:P(death in one year) = 1 - P(survival in one year)= 1 - 0.9561= 0.0439Using the probability of the woman's death, we can construct the following probability distribution table for profit: Where, if the woman dies, the profit of the insurance company will be $86,000. And if the woman survives, the profit of the insurance company will be -$4000.Profit X Probability$86,000 0.0439-$4,000 0.9561Thus, the probability distribution of profit made by the insurance company is as follows:Probability distribution of profit:Profit X Probability$86,000 0.0439-$4,000 0.9561Therefore, the probability distribution is:Profit X Probability$86,000 0.0439-$4,000 0.9561

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Which person would most benefit from homeowners insurance?
A) Hilary lives in an apartment with few personal possessions.
B) Karim lives in a dorm
C) Michael and Bryce have a 30-year mortgage.
D) Fran lives in an assisted living facility

Answers

The person would most benefit from homeowners insurance is D) Fran lives in an assisted living facility.

What is insurance?

Insurance can be described as the way of  managing your risk when someone subscribe to  insurance,  then the  protection against unexpected financial losses is been gotten.

Hence, The person would most benefit from homeowners insurance is D) Fran lives in an assisted living facility.

Therefore , option D is correct.

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Answer:

Fran lives in an assisted living facility

Explanation:

I need this answer guys PLEASE.
Will give Brainliest
Demand-pull inflation occurs when

the price of goods rises suddenly and extremely fast.
consumers begin purchasing more goods.
producers need more money to make and distribute goods.
the government prints more money and pushes prices up.​

Answers

Answer:

The production and transport of good and service are high and rises than the demand pull inflation occurs. It may be profitable for any business. Demand pull inflation need cost more but more than that they get profit

If you’re not careful, it can become costly to use P2P payments. Name at least 3 ways you could LOSE money using person-to-person apps

Answers

P2P payment is a medium of transferring funds to purchase cryptocurrencies.

Cryptocurrencies means an electronic form of currencies with huge volatility.

Three ways by which one can lose money on the platform:

If money are sent to the wrong bank account.

Money sent to wrong address are irretrievable.

Through the intelligence of scammers

In conclusion, in an attempt not to lose money, Crypto-currencies service providers introduced the P2P known as Peep-to-Peer.

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the first element in a strategic campaign plan is a:

Answers

The first element in a strategic campaign plan is a goal.

The campaign plan is a document that outlines the goals, objectives, and strategies that a group or organization intends to use to achieve a specific outcome.

A strategic campaign plan is a comprehensive plan that details the tactics and activities that will be used to achieve a specific goal. A campaign plan is created in response to a specific problem or situation and can be used to achieve a variety of objectives.

A campaign plan is a critical component of any campaign because it establishes the goals and objectives for the campaign and outlines the strategies and tactics that will be used to achieve them.

By creating a campaign plan, a group or organization can ensure that they are focused on the most important priorities and that they are using the most effective tactics to achieve their goals.

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The following table presents information on four different open-end mutual funds. use the information in the table to answer the questions that follow.
fund nav net chg ytd % ret
brrt 38.21 0.37 9.9
glbex p 13.32 0.04 3.4
pwrsl r 19.77 0.14 6.3
gmar 30.81 0.28 8.8
a. the mutual fund (brrt, pwrsl, glbex, or gmar) _______ charges a back-end load fee.
b. true or false: you can generally expect funds that charge back-end load fees to outperform funds that do not charge these fees.
t / f _________
c. suppose brrt has a front-end load fee of 7%. if you purchase 100 shares of this fund at the nav, you will pay a commission of _________. if, in one month, you sell the shares, you (will not or will also) _________ pay a redemption fee at that time.
d. if you are interested only in funds without any fee, you (will need or do not need) ___________ to use additional online resources to find no-load funds, because using on ly the quotations as listed in the table, it is (very easy or impossible) to determine the amount of any front-end load fee that the fund may charge.

Answers

Mutual Fund Net Asset Value (NAV) depicts a fund's per share market value. On this basis, the answers are: a. glbex; b. false; c. 7.7%: will not; d. do not need: very easy. Read below about Mutual Fund Net Asset Value.

What is the nature Mutual Fund Net Asset Value?

a. the mutual fund (brrt, pwrsl, glbex, or gmar) brrt charges a back-end load fee.

b. true or false: you can generally expect funds that charge back-end load fees to outperform funds that do not charge these fees.

t / f False

c. suppose brrt has a front-end load fee of 7%. if you purchase 100 shares of this fund at the nav, you will pay a commission of 7.7%. if, in one month, you sell the shares, you (will not or will also) will not pay a redemption fee at that time.

d. if you are interested only in funds without any fee, you (will need or do not need) do not need to use additional online resources to find no-load funds, because using on ly the quotations as listed in the table, it is (very easy or impossible) to determine the amount of any front-end load fee that the fund may charge.

Therefore, the correct answers are as given above.

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Can someone help me please????????

Can someone help me please????????

Answers

Answer:

25% = 0.25 = 25/100 --> 1/4

90% = 0.90 = 90/100 --> 9/10

60% = 0.6 = 3/5

35% = 0.35 = 35/100 --> 7/20

33.3...% = 0.33...  = 1/3

65% = 0.65 = 65/100 --> 13/20

How to calculate percentage:

[From decimal]

Decimal x 100 = percentage

e.g. 0.2 x 100 = 20%

[From fraction]

Numerator / Denominator x 100 = percentage

top number / bottom number x 100 = percentage

e.g. 3/5 --> 3 / 5 x 100 = 0.6 x 100 = 60%

How to calculate decimal:

[From percentage]

Percentage / 100 = Decimal

e.g. 45% / 100 = 0.45

[From fraction]

Numerator / Denominator = Decimal

top number / bottom number = Decimal

e.g. 7/8 = 7 / 8 = 0.875

How to calculate fraction:

[From percentage]

Percentage number / 100 --> simplify

e.g. 38% --> 38/100 --> 19/50

[From decimal]

Decimal x 100 / 100 --> simplify

e.g. 0.75 --> 0.75 x 100 = 75 --> 75/100 --> 3/4

Hope this helps :)

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