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Year 10 · Financial mathematics · 15 min

Repeated percentage change

Combine percentage changes with multiplication and undo a change with division.

01 / LEARN

The idea, step by step

Use the new base each time

A 20% discount followed by a 10% discount uses factor 0.8×0.9=0.72. The second discount acts on the already reduced amount.

The combined discount is 28%, not 30%. Write every factor before evaluating to avoid adding percentages that use different bases.

Reversing a factor

To reverse multiplication by b, divide by b. A 20% decrease uses 0.8; reversing it uses 1⁢/0.8=1.25, so it needs a 25% increase.

An equal percentage increase and decrease do not cancel. Their order does not affect the product when there are no fixed fees or extra transactions, but their changing bases still matter.

A common trap

Add signed percentages even when the base changes.

Instead: Use multipliers for changes to the current amount. Add percentages only when the same fixed base is explicitly used.

02 / WORKED EXAMPLES

See the thinking

Example 1

Two discounts

A 250-dollar item has a 20% discount followed by another 10% discount. Find the final price and overall discount.

  1. 250⁢(0.8)⁢(0.9)=180.
  2. The retained fraction is 0.72, giving an overall 28% discount.
180 dollars; 28% discount.
Example 2

Up then down

An amount rises by 10% then falls by 10%. Find its net percentage change.

  1. The combined factor is 1.1×0.9=0.99.
  2. It retains 99%, so the net change is a 1% decrease.
1% decrease.

Check your understanding

What increase reverses a 25% decrease?

Show answer

33⁤13%

1⁢/0.75=4⁢/3, which is one third above 1.

03 / WORKSHEET

Your turn

6 questions · 14 marks · Work at your own pace.

Read the questions online
  1. A 400-dollar price rises by 5%, then falls by 5%. Find the final price.
    2 marks
  2. Combine increases of 10% and 20%.
    2 marks
  3. Combine decreases of 10% and 30%.
    2 marks
  4. A final price is 216 dollars after a 10% discount. Find the original price.
    2 marks
  5. What percentage increase reverses a 40% decrease?
    3 marks
  6. An 800-dollar amount rises 20%, falls 25%, then rises 10%. Find the result and net change.
    3 marks
Read the worked solutions

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

  1. A 400-dollar price rises by 5%, then falls by 5%. Find the final price.
    2 marks

    400⁢(1.05)⁢(0.95)=399.

    399 dollars
  2. Combine increases of 10% and 20%.
    2 marks

    1.1×1.2=1.32.

    32% increase
  3. Combine decreases of 10% and 30%.
    2 marks

    0.9×0.7=0.63.

    37% decrease
  4. A final price is 216 dollars after a 10% discount. Find the original price.
    2 marks

    216⁢/0.9=240.

    240 dollars
  5. What percentage increase reverses a 40% decrease?
    3 marks

    The reverse factor 1⁢/0.6=5⁢/3 exceeds 1 by 2⁢/3.

    66⁤23%
  6. An 800-dollar amount rises 20%, falls 25%, then rises 10%. Find the result and net change.
    3 marks

    800⁢(1.2)⁢(0.75)⁢(1.1)=792; the combined factor is 0.99.

    792 dollars; 1% decrease.
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Curriculum reference & lesson scope

Australian Curriculum v9 and SA Curriculum Mathematics

Simple versus compound growth; compound interest; depreciation; repeated percentage change; savings/loan scenarios with supplied models; changing assumptions and checking results; spreadsheets/digital models.

Official curriculum source ↗
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