Before any symbols, a picture. Take a bar. Call the entire bar the whole. Colour some of it — that coloured piece is a part.
Why the topic needs this: every percentage question is secretly "how big is the part compared to the whole?" If you cannot point to which thing is the whole, you cannot even start.
Sometimes we don't want a stacked fraction; we want a single number. That number is the decimal.
Why we need it: decimals let us multiply easily. "0.375×240" is a one-step calculator move; "83 of 240" needs mental gymnastics. Same value, friendlier shape. (More in Fractions and Decimals.)
Why lock the denominator at 100? Because two fractions with different bottoms are hard to compare by eye — is 4017 bigger than 209? Force both onto a 100-slice grid and the answer is instant: 42.5 slices vs 45 slices. That shared grid is the entire reason percentages exist.
This is the single idea students trip on, so we give it its own name and picture.
Why it matters so much: the very same physical change looks like a different percent depending on which bar you call "the whole." A jump of 50 is 20% of a 250-bar but only 16.7% of a 300-bar. Get the base wrong and every later step is wrong. This is exactly the Ratio and Proportion idea of "compared to what?"
The multiplier form Vn=Vo(1+100r) powers Simple and Compound Interest and Exponential Growth and Decay; the profit%/loss% idea in Profit and Loss is just this change formula with cost price as the base.