## The Basics of Percentages

Before we dive into what 20 of $25 means, let’s first discuss the basics of percentages. A percentage is a way to express a portion of a whole as a fraction of 100. For example, 50% represents 50 out of 100, or half of the whole.

Percentages are often used in everyday life, such as when calculating tips, discounts, or taxes. It’s important to have a solid understanding of percentages to avoid making costly mistakes.

## Understanding 20 of $25

Now, let’s get back to the question at hand: what is 20 of $25? This question is asking us to find what 20% of $25 is.

To calculate this, we first need to convert 20% to a decimal. We can do this by dividing 20 by 100, which gives us 0.2. Next, we multiply 0.2 by $25 to get our answer.

So, 20% of $25 is $5. This means that if you had a $25 bill and wanted to leave a 20% tip, you would leave $5.

## Why Knowing Percentages is Important

As mentioned earlier, percentages are used in many aspects of daily life. For example, understanding percentages is crucial when shopping during sales or when calculating taxes and discounts.

Knowing how to calculate percentages can also be helpful in budgeting and saving money. By understanding percentages, you can better calculate how much money you need to set aside for bills, savings, and other expenses.

## How to Calculate Percentages

To calculate a percentage, you need to first convert it to a decimal. You can do this by dividing the percentage by 100. For example, if you want to find 15% of $50, you would divide 15 by 100 to get 0.15.

Next, you multiply the decimal by the whole amount to get the percentage. So, to find 15% of $50, you would multiply 0.15 by $50 to get $7.50.

## Final Thoughts

Understanding percentages is crucial for many aspects of daily life. Knowing how to calculate percentages can help you make informed decisions about your finances and avoid costly mistakes. So, the next time you’re faced with a percentage question, you’ll be equipped to handle it like a pro.

And now that you know what 20 of $25 is, you can impress your friends and family with your newfound knowledge!