Determining a percentage of a given number is a fundamental mathematical operation with wide-ranging applications. In the specific instance of calculating 3% of 200,000, the process involves multiplying the total value by the percentage expressed as a decimal. For example, transforming 3% into its decimal equivalent (0.03) and then multiplying it by 200,000 provides the resulting value.
The ability to calculate percentages is crucial in various fields, including finance, statistics, and everyday life. Understanding percentage calculations allows for informed decision-making when evaluating discounts, interest rates, statistical data, and proportional relationships. Its historical roots trace back to ancient commerce and the need for standardized methods of calculating proportions and shares.