Percentages
While watching television, a person might see an advertisement for a store that is offering 25 percent off some items and hear on the news that unemployment is at 10 percent. Percentages are just a different way of looking at fractions. One percent of something is the same as 1/100th. So a 10 percent unemployment rate means that one person in 10 is unemployed. An item that is 25 percent off has had its price reduced by 1/4.
Money
Fractions involving money are one of the most frequent encountered in daily life. In U.S. currency, a nickel is 1/20th of one dollar, a dime is 1/10th of a dollar and a quarter is 1/4 of a dollar. When a person puts money in a savings account or buys something with a credit card, fractions are also used to calculate the interest. These fractions are calculated as percentages. So a 1 percent interest rate can be converted into a fraction -- 1/100th.
Time Capsule Variations
Fractions are also involved in calculating time. A second is 1/60th of a minute, a minute is 1/60th of an hour, an hour is 1/24th of a day and a day is 1/365th of a year. Phrases such as "half an hour" are commonly used. When calculating time, such as the time spent completing a project, a good knowledge of fractions can make the math much simpler.
Cooking
Fractions are constantly used in cooking. For example, a recipe for oatmeal cookies might call for 3/4 of a cup of brown sugar, 1/2 cup of granulated sugar, 2 1/2 sticks of butter and 1/4 tsp. of nutmeg, along with other ingredients to make four dozen cookies. If a person decided he wants to make eight dozen cookies, he would need to know how to double each of those fractions in order to complete the recipe.