Understanding percentages is super important when it comes to money, like figuring out discounts and interest rates. Let’s break it down step by step:

Discounts

1. Find the original price: Let’s say a shirt costs $100.

2. Calculate the discount: If the shirt is on sale for 20% off, you need to find out how much 20% of 100 is. To do this, you can use this simple calculation: $$ \text{Discount} = \frac{20}{100} \times 100 = 20 $$ So, the discount is 20.

3. Find the sale price: Now, take the original price and subtract the discount.
   $\text{Sale Price} = 100 - 20 = 80$
   So, the shirt now costs $80.

Interest Rates

1. Know how much you’re investing: Imagine you put $2000 in the bank.

2. Calculate the interest you earn: If the bank gives you a 5% interest rate each year, find out how much money you make in interest.
   Here’s the calculation:
   $\text{Interest} = \frac{5}{100} \times 2000 = 100$
   So, you earn $100 in interest.

3. Find the total amount after interest: To see how much money you have now, add the interest to your original amount.
   $\text{Total} = 2000 + 100 = 2100$
   Now, you have $2100.

These simple calculations can really help you make smart choices with your money!