An SAT Math micro-topic under Percentages (Problem solving and data analysis). Free to read — no account needed.
A percentage change is always taken of some amount, then added or subtracted. Increasing by a percent means adding that percent of the value; decreasing means subtracting it. Multiplying by (1+rate) or (1−rate) does the same thing in one step.
"X% more than a value" means you add X% of that value. If Model X costs 75% more than Model Y's $100, then Model X costs 100+75=175 dollars. In symbols, u=c+0.75c=1.75c.
A discount tells you what fraction of the price remains. A 25% discount means you pay 100%−25%=75% of the price, so you multiply by 0.75. A 25% discount on $80 gives 0.75×80=60 dollars.
Often you are given the value after the change and must find the original. Let the original be x, translate the change into an equation, and solve. If a value increased 10% to become 110, then x+0.1x=1.1x=110, so x=1.1110=100.
The same idea works after a decrease. If a price dropped 20% to 48, then it kept 80%, so 0.8x=48 and x=0.848=60. Always start by writing what the original amount times the change factor equals.
Worked examples
A price rose by 20% to become 120 dollars. What was the original price? Let the original price be x. Then 1.2x=120. So x=1.2120=100 dollars.
A factory made 4000 items per month, and the monthly average is to rise by 150%. What is the new average? Add 150% of 4000, which is 6000. So the new average is 4000+6000=10000 items.
After a 25% discount, a bag costs 60 dollars. What was the original price? Let the original price be x. A 25% discount means paying 75%, so 0.75x=60. Then x=0.7560=80 dollars.
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