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Year 9 Maths Number and Financial Mathematics

Percentage Increase and Decrease

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Theory

A percentage increase or decrease can be done in one step with a multiplier. This Year 9 maths page revises the Year 8 work: increasing and decreasing by a percentage, finding the percentage change between two amounts, applying changes one after another, and working backwards to the original amount.

To find a percentage of a quantity, write the percentage as a decimal (or a fraction over \(100\)) and multiply. "Of" means multiply: \(15\%\) of \(80\) is \(0.15 \times 80 = 12\).

In an increase, the new amount is the whole \(100\%\) plus the extra. Up \(12\%\) makes \(112\%\), so multiply by \(1.12\).

In a decrease, the new amount is what is left: \(100\%\) minus the cut. Down \(40\%\) leaves \(60\%\), so multiply by \(0.6\).

The unitary method finds what \(1\%\) is worth first, by dividing, then multiplies up to the percentage you want. It is handy for checking, and for working backwards.

Working backwards: if you know the amount after a change and want the original, divide by the multiplier instead of multiplying.

The percentage change compares the change with the original amount: change \(\div\) original \(\times 100\%\).

An increase of 12 percentTop bar: the old amount, 100%. Bottom bar: the old 100% plus an extra 12%, making 112%. So the new amount is the old amount times 1.12. old amount100%new amount100%+12%new = 112% of old = old Γ— 1.12
An increase keeps the whole \(100\%\) and adds the extra. Up \(12\%\) means multiply by \(1.12\).
A decrease of 40 percentTop bar: the old amount, 100%. Bottom bar: 40% is taken off, leaving 60%. So the new amount is the old amount times 0.6. old amount100%after a 40% decrease60% left40% offnew = 60% of old = old Γ— 0.6
A decrease leaves \(100\% - 40\% = 60\%\). Down \(40\%\) means multiply by \(0.6\), the part that is left.

Percentage of a quantity, increase and decrease:

\[r\% \text{ of } A = \dfrac{r}{100} \times A\]\[\text{new} = A \times \left(1 + \dfrac{r}{100}\right)\]\[\text{new} = A \times \left(1 - \dfrac{r}{100}\right)\]
new=A×(1+r100)

Going forwards multiplies; going backwards divides:

ChangeMultiplierTo undo it
up \(5\%\)\(\times 1.05\)\(\div 1.05\)
up \(20\%\)\(\times 1.2\)\(\div 1.2\)
down \(10\%\)\(\times 0.9\)\(\div 0.9\)
down \(25\%\)\(\times 0.75\)\(\div 0.75\)
Mixed-number percentages. Write them as a decimal first: \(6\dfrac{1}{2}\% = 6.5\% = 0.065\).
One amount as a percentage of another. Same units, part over whole, times \(100\%\). Round only if the question asks, for example to two decimal places.

Percentage change:

\[\text{percentage change} = \dfrac{\text{new} - \text{original}}{\text{original}} \times 100\%\]
More than 100%. An increase of \(150\%\) keeps the whole \(100\%\) and adds \(150\%\), so the multiplier is \(2.5\).
Changes in a row. Multiply by each multiplier in turn. Down \(20\%\) then down a further \(10\%\) is \(\times 0.8 \times 0.9 = \times 0.72\): \(28\%\) off overall, not \(30\%\).
Units. Change units before or after, but say which: decreasing \(3\) t by \(18\%\) gives \(2.46\) t, which is \(2460\) kg.
GST. In Australia, GST is \(10\%\) of the price before tax, so a price that includes GST is \(110\%\) of that price. The GST inside a total is \(\dfrac{1}{11}\) of it: a bill of \(\$253\) including GST has \(253 \div 11 = \$23\) of GST.

How to solve a percentage problem

  1. Decide what is asked: a part, a new amount after a change, or the original amount.
  2. Part: multiply the amount by the percentage as a decimal.
  3. New amount: multiply by \(1 +\) the rate for an increase, or \(1 -\) the rate for a decrease.
  4. Original amount: divide the new amount by the multiplier, or use the unitary method.
  5. Check by going the other way, or with \(1\%\).

How to find a percentage change

  1. Subtract to find the change: new minus original.
  2. Divide by the original amount, then multiply by \(100\%\).
  3. Say whether it is an increase or a decrease.
Example 1 β€” Increases
Increase
(i) \(\$60\) by \(12\%\)
(ii) \(80\) kg by \(150\%\).
Solution

(i) The new amount is \(100\% + 12\% = 112\%\) of the old one, so the multiplier is \(1.12\):

\(60 \times 1.12\)\(=\)\(\mathbf{\$67.20}\)
60×1.12=67.20

Or in two steps: \(12\%\) of \(\$60\) is \(0.12 \times 60 = \$7.20\), and \(\$60 + \$7.20 = \$67.20\). Both ways give the same answer.

(ii) The new amount is \(100\% + 150\% = 250\%\) of the old one, so the multiplier is \(2.5\):

\(80 \times 2.5\)\(=\)\(\mathbf{200}\ \textbf{kg}\)

An increase of more than \(100\%\) more than doubles the amount.

Example 2 β€” Decreases
Decrease
(i) \(70\) kg by \(40\%\)
(ii) \(3\) tonnes by \(18\%\). Give the answer in kilograms.
Solution

(i) What is left is \(100\% - 40\% = 60\%\), so the multiplier is \(0.6\):

\(70 \times 0.6\)\(=\)\(\mathbf{42}\ \textbf{kg}\)
70×0.6=42

Multiplying by \(0.4\) instead gives \(28\) kg. That is the amount taken off, not the amount left. Check: \(42 + 28 = 70\).

(ii) Change to kilograms first: \(3\) t \(= 3000\) kg. What is left is \(100\% - 18\% = 82\%\):

\(3000 \times 0.82\)\(=\)\(\mathbf{2460}\ \textbf{kg}\)
Example 3 β€” Percentage change
(i) The price of a bread roll rises from \(\$2.50\) to \(\$2.80\). Find the percentage increase.
(ii) A town's population falls from \(8400\) to \(7980\). Find the percentage decrease.
Solution

(i) Find the change, then divide by the original price:

\(\text{increase}\)\(=\)\(2.80 - 2.50 = \$0.30\)
\(\dfrac{0.30}{2.50} \times 100\%\)\(=\)\(\mathbf{12\%}\)

(ii) The change is a fall, so it is a percentage decrease:

\(\text{decrease}\)\(=\)\(8400 - 7980 = 420\)
\(\dfrac{420}{8400} \times 100\%\)\(=\)\(\mathbf{5\%}\)

Dividing by the new amount instead would give the wrong answer.

Example 4 β€” Changes in a row and working backwards
(i) A \(\$400\) bike is reduced by \(20\%\), then by a further \(10\%\). Find the final price.
(ii) After a \(15\%\) decrease, a number is \(306\). What was the original number?
Solution

(i) Use one multiplier for each change. The second \(10\%\) comes off the reduced price:

\(400 \times 0.8\)\(=\)\(320\)
\(320 \times 0.9\)\(=\)\(\mathbf{\$288}\)

That is \(\$112\) off, which is \(28\%\) of \(\$400\), not \(30\%\).

(ii) The \(306\) is the original times \(0.85\), so divide to undo it:

\(\text{original}\)\(=\)\(306 \div 0.85\)
\(\)\(=\)\(\mathbf{360}\)

Check: \(360 \times 0.85 = 306\).

Common pitfalls

A decrease multiplier is what is left. Down \(30\%\) means \(\times 0.7\), not \(\times 0.3\). Multiplying by \(0.3\) gives the discount, not the new price.
Find the original by dividing. If a price after a \(20\%\) rise is \(\$90\), the original is \(90 \div 1.2 = \$75\), not \(90\) minus \(20\%\) of \(90\).
Up then down is not back to the start. \(\$200\) up \(10\%\) is \(\$220\); that down \(10\%\) is \(\$198\), because the second \(10\%\) is of a bigger amount.
Write small percentages carefully. \(4\dfrac{1}{2}\%\) is \(0.045\), not \(0.45\).
Percentage change uses the original amount. From \(\$2.50\) to \(\$2.80\) is a \(12\%\) increase: \(0.30 \div 2.50\). Dividing by \(2.80\) gives about \(10.7\%\), which is wrong.

Frequently asked questions

How do you increase an amount by a percentage?

Multiply by \(1\) plus the percentage as a decimal. To increase \(\$60\) by \(12\%\), multiply by \(1.12\) to get \(\$67.20\).

How do you decrease an amount by a percentage?

Multiply by \(1\) minus the percentage as a decimal. To decrease \(70\) kg by \(40\%\), multiply by \(0.6\) to get \(42\) kg.

How do you find the original price before a percentage change?

Divide the new price by the multiplier. If a price after a \(25\%\) increase is \(\$75\), the original is \(75 \div 1.25 = \$60\).

What is the unitary method for percentages?

Find what \(1\%\) is worth by dividing, then multiply to get the percentage you need. If \(15\%\) is \(\$24\), \(1\%\) is \(\$1.60\), so \(100\%\) is \(\$160\).

How do you calculate a percentage increase?

Subtract to find the increase, divide by the original amount and multiply by \(100\%\). From \(\$2.50\) to \(\$2.80\) is an increase of \(\$0.30\), and \(\dfrac{0.30}{2.50} \times 100\% = 12\%\).

Is 20 per cent off then 10 per cent off the same as 30 per cent off?

No. The second discount is taken off the already reduced price: \(0.8 \times 0.9 = 0.72\), so the total saving is \(28\%\), not \(30\%\).