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Year 11 · Investing and borrowing · 20 min

Percentage/financial arithmetic

Calculate financial percentage changes and recover an original value.

01 / LEARN

The idea, step by step

Identify the whole

A percentage always uses a reference amount. For a discount, use the original price; for a percentage profit on cost, use the cost. Write that reference before calculating. A rate of 7.5% is 0.075 as a decimal.

Use 1+r to increase a value and 1−r to decrease it. Consecutive changes multiply their factors because each change acts on the current amount.

Reverse a change

After a 15% discount, a price is 85% of its original. Divide the final price by 0.85 to recover the original; adding 15% to the smaller price does not reverse the change.

Keep unrounded values until the final money answer. Estimate the direction of the change first so an incorrect factor is easier to notice.

A common trap

Equal percentage increases and decreases cancel.

Instead: A 20% decrease followed by 20% increase multiplies by 0.8×1.2=0.96, leaving a 4% decrease.

02 / WORKED EXAMPLES

See the thinking

Example 1

Worked example

A bicycle costs AUD 240 before a 12.5% discount. Delivery adds AUD 18. Find the total.

  1. Sale factor=0.875.
  2. 240×0.875=210.
  3. Add delivery:210+18=228.
AUD 228.00
Example 2

Worked example

A yearly fee is AUD 378 after an 8% increase. Find its previous value.

  1. 1.08 P=378.
  2. P=378/1.08=350.
  3. Check:350+0.08×350=378.
AUD 350.00

Check your understanding

Find 7.5% of AUD 640.

Show answer

AUD 48.00

0.075×640=48.

03 / WORKSHEET

Your turn

6 questions · 12 marks · Work at your own pace.

Read the questions online
  1. Find 6% of AUD 850.
    2 marks
  2. Reduce AUD 96 by 15%.
    2 marks
  3. A bill rises from AUD 125 to AUD 140. Find its percentage increase.
    2 marks
  4. A jacket costs AUD 108 after a 25% discount. Find the original price.
    2 marks
  5. AUD 500 increases 10%, then decreases 10%. Find the final value and overall change.
    2 marks
  6. Add 8% tax to a tax-exclusive price of AUD 225. Find tax and total.
    2 marks
Read the worked solutions

Equivalent correct methods earn the corresponding marks. Include units where asked.

  1. Find 6% of AUD 850.
    2 marks

    0.06×850=51.

    AUD 51.00
  2. Reduce AUD 96 by 15%.
    2 marks

    96×0.85=81.60.

    AUD 81.60
  3. A bill rises from AUD 125 to AUD 140. Find its percentage increase.
    2 marks

    Change=15.

    15/125×100=12%.

    12%
  4. A jacket costs AUD 108 after a 25% discount. Find the original price.
    2 marks

    0.75 P=108.

    P=144.

    AUD 144.00
  5. AUD 500 increases 10%, then decreases 10%. Find the final value and overall change.
    2 marks

    500×1.1×0.9=495.

    5/500=0.01.

    AUD 495.00;1% decrease
  6. Add 8% tax to a tax-exclusive price of AUD 225. Find tax and total.
    2 marks

    0.08×225=18.

    225+18=243.

    AUD 18 tax; AUD 243 total
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Curriculum reference & lesson scope

SACE Board of South Australia

Stage 1 General Mathematics: investing and borrowing. Supplied educational models cover interest, investment comparisons, shares and credit; they are not recommendations of real products or statements of personal tax liability.

Official curriculum source ↗
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