Determining the proportional relationship between two numbers, specifically expressing one number as a fraction of another in terms of hundredths, provides a standardized method for comparison. For example, when quantifying a portion of a whole, such as 5 parts out of a total of 7, converting this ratio to a percentage offers immediate comprehension of its relative magnitude.
The utility of this conversion extends across diverse fields. In academic settings, it facilitates the interpretation of test scores and assignment grades. In business, it aids in analyzing market share, profit margins, and growth rates. Historically, the development of percentage calculations provided a crucial tool for commerce, allowing for easier comparison of prices, interest rates, and financial gains.