Fractions and decimals are used in the daily practice of real estate. Both decimals and fractions represent a part of a number, as if that number had been broken into pieces or "fractured." For example, if a whole object is broken into four equal pieces and the problem only deals with one of the four pieces, the mathematical representation of that event may be expressed in a fraction or in a decimal.

In the case of a fraction, the bottom number, known as the denominator, represents the number of equal parts that the whole has been divided into. The top number, known as a numerator, indicates how many of the equal parts are being worked with. In the above example one of the four equal pieces expressed as a fraction would be ¼.

A decimal is an alternative way to express a fractional part of something or any number less than one. A number that follows a decimal point (a period) indicates that the number is a fractional part of a whole. In the above example one of the four equal pieces expressed as a decimal would be .25.

The number of numbers following the decimal point can extend to infinity. However, in the case of numbers relating to money, the number will be carried to the second decimal place (the second spot to the right of the period). Therefore, a dime is expressed as $.10 and a quarter as $.25. Expressed in terms of a fraction a dime would be 10/100 of a dollar or 1/10 of a dollar. A quarter expressed as a fraction would be 25/100 of a dollar or ¼ of a dollar.