The term "5%" typically refers to a percentage that represents a fraction of a whole. In mathematical terms, 5% means 5 out of every 100 parts. It is often used in various contexts, such as finance, statistics, and everyday calculations, to indicate a small portion of a total amount. In finance, for example, a 5% interest rate on a loan means that for every $100 borrowed, the borrower will pay $5 in interest over a specified period. Similarly, in sales, a 5% discount means that the price of an item is reduced by 5 out of every 100 units of currency, making it more affordable for consumers.