4%= .04. or 4 one hundreths. .04 X 40000= 1600 15.8%= .158 or one hundred fifty eight thosandths. .158 X 40000= 6320. Since you are dealing with 40000 on both equations, you can add the %s together (.04 + .158)= .040 + .158= .198 X 40000 =7920, the same as 1600 + 6320= 7920