A consistent credit turnover is difficult to maintain in business. Sales managers and individual vendors prefer giving some form of discount to encourage their customers to pay early rather than have the entire amount stuck in collections. This is particularly important because suppliers have to pay for the inventory up front often times before they make a sale to the customer. Thus, the supplier is out of the money used to pay for the inventory and out of the inventory that was sold to the customer. Suppliers need to keep a consistent flow of cash in order to reorder stock or production materials and pay for other operating expenses. Before we get started in the fraction to percentage conversion, let’s go over some very quick fraction basics.
Fraction Simplification Table
The first way to simplify the fraction 2/10 is to use the Greatest Common Factor (GCF) of our numerator [2] and denominator [10]. I wish I had more to tell you about converting a fraction into a decimal but it really is that simple and there’s nothing more to say about it. One thing we teach our students at Thinkster is that there are multiple ways to solve a math problem. This helps our students learn to think flexibly and non-linearly.
Method 1 – Converting 2/10 Into a Percentage:
As you can see, there are 20 pieces out of a possible 100 pieces. Re-writing this as a percentage, we can see that 2/10 as a percentage is 20%. And then divide both the numerator [2] and denominator [10] by the GCF [2]. Shaun Conrad is a Certified Public Accountant and CPA exam expert with a passion for teaching. After almost a decade of experience in public accounting, he created MyAccountingCourse.com to help people learn accounting & finance, pass the CPA exam, and start their career.
Fraction to Decimal Calculator
Here’s a little real life example of converting a fraction to a decimal when using quantities. Let’s say you’re cooking and you can usually see fractionally how much of an ingredient is left in a pack. However, electronic scales measure weight in decimals and not as a fraction of the ingredient left. This makes converting between fractions and decimals a useful skill in cooking. 2/10 represents a 2 percent discount when payment is made to the supplier within 10 days of the credit sale.
- I wish I had more to tell you about converting a fraction into a decimal but it really is that simple and there’s nothing more to say about it.
- Some suppliers may choose to offer larger discounts or longer discount period, but the objective of encouraging early payment remains unchanged.
- Another method to reduce the fraction 2/10 to its simplest form is to use the Prime Factors of numerator [2] and denominator [10].
- The most common reason is because your teacher told you to!
Percentage table
N30 or Net 30 represents the other option to pay the amount due in full within 30 days. The goal of 2/10 is to encourage early payment for credit sales. Both are pretty straightforward and easy to do, but I personally prefer the convert to decimal method as it takes less steps. If you already know how to convert a fraction into a decimal, you can also use this method as a step for converting to a percentage.
Try out both methods and see which one works best for you! Some people like to use the first method, while others will prefer to use the decimal method. There is no “best” way to convert fractions into percentages, just choose the method that works for you. I’ve seen a lot of students https://www.kelleysbookkeeping.com/ get confused whenever a question comes up about converting a fraction to a percentage, but if you follow the steps laid out here it should be simple. That said, you may still need a calculator for more complicated fractions (and you can always use our calculator in the form below).
But beyond that, the decimal form of a fraction makes it very easy to compare two fractions quickly without having to think about it. One way to show a number that is only a part of a whole is in a fraction form. In this guide, we will show you how to convert 2/10 into a percentage. Another method to reduce the fraction taxpayer identification number tin 2/10 to its simplest form is to use the Prime Factors of numerator [2] and denominator [10]. If you want to practice, grab yourself a pen, a pad, and a calculator and try to convert a few fractions to a percentage yourself. In our case 10 is 2 digits long so we need to multiply the numerator and denominator by 100.
Tim, knowing that paying within 10 days saves him $300, makes payment on January 5. Thus, Scott has effectively encouraged Tim to pay for his products early. Now we can see that our fraction is 20/100, which means that 2/10 as a percentage is 20%. Our elite math tutors are ready to help make your child a math champion!
In a fraction, the number above the line is called the numerator, and the number below the line is called the denominator. The fraction shows how many “pieces” of the number there are, compared to how many there are possible. For instance, in the fraction 2/10, we could say that there are 2 pieces out of a possible 10 pieces. According to ‘Fraction to Percentage’ conversion formula if you want to know what percent of 10 is 2 you have to divide 2 by 10 and then multiply the result by 100.
It must be noted however, that these terms can be adjusted to suit the supplier. Some suppliers may choose to offer larger discounts or longer discount period, but the objective of encouraging early payment remains unchanged. What https://www.kelleysbookkeeping.com/double-entry-definition/ we really want to do though, is get rid of the decimal places completely so that the numerator in our fraction is a whole number. To do this, we have to count the numbers after the decimal point, which in this case is 10.