Math Core

Lesson 3.4 · Ratios, Rates and Percents

Percent change

Prices rise, populations shrink, and stores mark things up and down. A percent change measures a change relative to the starting amount. In this lesson you'll find percent changes, write them as a single multiplication, and use equations to work backward, which is exactly how percent problems appear in algebra.

Finding a percent change

Percent change

percent change=amount of changeoriginal amount\text{percent change} = \frac{\text{amount of change}}{\text{original amount}}

Write the result as a percent. It's a percent increase if the amount went up and a percent decrease if it went down.

Worked example: Same change, different percents

  1. A quantity goes from 64 to 80. What is the percent change?
  2. A quantity goes from 80 to 64. What is the percent change?

Solutions. Both changes are 80−64=1680 - 64 = 16.

  1. The original is 64: 1664=0.25\dfrac{16}{64} = 0.25, a 25%25\% increase.
  2. The original is 80: 1680=0.2\dfrac{16}{80} = 0.2, a 20%20\% decrease.

The change is the same, but the starting amounts differ, so the percents differ.

Common mistake

Always divide by the original amount, the value before the change. Dividing by the new amount is the most common mistake with percent change.

Percent change as a multiplier

If a price xx increases by 12%12\%, the new price is the original plus 12%12\% of it:

x+0.12x=1x+0.12x=1.12x.x + 0.12x = 1x + 0.12x = 1.12x.

Combining 1x1x and 0.12x0.12x turns two steps into one multiplication. A decrease works the same way: x−0.12x=0.88xx - 0.12x = 0.88x.

Multipliers

  • An increase of rr (as a decimal) multiplies the original by 1+r1 + r.
  • A decrease of rr (as a decimal) multiplies the original by 1−r1 - r.

For example, a 30%30\% discount multiplies by 0.700.70, and a 6%6\% tax multiplies by 1.061.06.

Worked example: A discount, then tax

A jacket is priced at $85. It is on sale for 30%30\% off, and then 6%6\% sales tax is added. What is the final cost?

Apply each multiplier in order:

sale price=0.70×85=59.50with tax=1.06×59.50=63.07\begin{aligned} \text{sale price} &= 0.70 \times 85 = 59.50 \\ \text{with tax} &= 1.06 \times 59.50 = 63.07 \end{aligned}

The final cost is $63.07.

Working backward with an equation

If you know the amount after a change, let xx be the original, write the multiplier equation, and solve.

Worked example: Finding the original

A town's population fell by 15%15\% to 3,400 people. What was the population before the drop?

After a 15%15\% decrease, 85%85\% remains, so

0.85x=3400x=34000.85=4000\begin{aligned} 0.85x &= 3400 \\ x &= \frac{3400}{0.85} = 4000 \end{aligned}

The original population was 4,000. Check: 15%15\% of 4,000 is 600, and 4000−600=34004000 - 600 = 3400. ✓

Common mistake

Don't "undo" a 15%15\% decrease by adding 15%15\% of 3,400. That gives 3400+510=39103400 + 510 = 3910, which is wrong, because the 15%15\% was taken from the original 4,000, not from 3,400. Divide by the multiplier instead.

Changes in a row

When one percent change follows another, multiply by each multiplier in turn. The overall multiplier is their product.

Worked example: Up 10%, then down 10%

A price rises 10%10\% and then falls 10%10\%. Is it back where it started?

The overall multiplier is

1.10×0.90=0.99.1.10 \times 0.90 = 0.99.

The final price is 99%99\% of the original, a 1%1\% decrease overall. The drop is taken from a larger amount than the rise was, so it removes more.

Tip

To find an overall percent change, pick an easy starting value like 100. In the example above, 100 becomes 110, then 110−11=99110 - 11 = 99. That's a 1%1\% decrease.

Practice

Practice 1

A quantity increases from 50 to 62. What is the percent increase?

Enter a number. Fractions like 3/4 and sqrt(2) are OK.

Practice 2

A store had 75 bikes in stock and now has 60. What is the percent decrease?

Enter a number. Fractions like 3/4 and sqrt(2) are OK.

Practice 3

Which expression gives the result of decreasing xx by 35%35\%?

Practice 4

Rent of $240 per month increases by 15%15\%. What is the new rent, in dollars?

Enter a number. Fractions like 3/4 and sqrt(2) are OK.

Practice 5

A store marks up the cost of a lamp by 40%40\% and sells it for $98. What did the lamp cost the store, in dollars?

Enter a number. Fractions like 3/4 and sqrt(2) are OK.

Practice 6

A $40 shirt is marked 25%25\% off. At the register, an extra 10%10\% is taken off the sale price. What is the overall percent discount from the original $40?

Enter a number. Fractions like 3/4 and sqrt(2) are OK.

Practice 7

A stock's price rises 50%50\% one month and falls 50%50\% the next. What is the overall change?

Practice 8

A town of 12,500 people grows by 4%4\% each year. What is its population after 2 years?

Enter a number. Fractions like 3/4 and sqrt(2) are OK.