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
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
- A quantity goes from 64 to 80. What is the percent change?
- A quantity goes from 80 to 64. What is the percent change?
Solutions. Both changes are .
- The original is 64: , a increase.
- The original is 80: , a 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 increases by , the new price is the original plus of it:
Combining and turns two steps into one multiplication. A decrease works the same way: .
Multipliers
- An increase of (as a decimal) multiplies the original by .
- A decrease of (as a decimal) multiplies the original by .
For example, a discount multiplies by , and a tax multiplies by .
Worked example: A discount, then tax
A jacket is priced at $85. It is on sale for off, and then sales tax is added. What is the final cost?
Apply each multiplier in order:
The final cost is $63.07.
Working backward with an equation
If you know the amount after a change, let be the original, write the multiplier equation, and solve.
Worked example: Finding the original
A town's population fell by to 3,400 people. What was the population before the drop?
After a decrease, remains, so
The original population was 4,000. Check: of 4,000 is 600, and . ✓
Common mistake
Don't "undo" a decrease by adding of 3,400. That gives , which is wrong, because the 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 and then falls . Is it back where it started?
The overall multiplier is
The final price is of the original, a 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 . That's a decrease.
Practice
A quantity increases from 50 to 62. What is the percent increase?
Enter a number. Fractions like 3/4 and sqrt(2) are OK.
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.
Which expression gives the result of decreasing by ?
Rent of $240 per month increases by . What is the new rent, in dollars?
Enter a number. Fractions like 3/4 and sqrt(2) are OK.
A store marks up the cost of a lamp by 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.
A $40 shirt is marked off. At the register, an extra 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.
A stock's price rises one month and falls the next. What is the overall change?
A town of 12,500 people grows by each year. What is its population after 2 years?
Enter a number. Fractions like 3/4 and sqrt(2) are OK.