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Discounts, tax and tips: choose the right multiplier

About 5 min

Questions stay in the language in which they were published.

These questions ask for a saving, an added charge or the amount paid after one or more percentage changes. The main decision is whether you need the percentage part by itself or a final total that still includes the starting amount.

Choose the quantity before calculating

First underline what is requested: the discount, the tax or tip, or the final price. Convert p% to p/100. For the percentage part alone, multiply the relevant base by p/100. For a final amount after a discount, multiply by 1 - p/100. For a final amount after an added charge, multiply by 1 + p/100.

Signal in the questionForm to use
Saving, tax, tip or charge alonebase × p/100
Price after p% offoriginal price × (1 - p/100)
Total after p% is addedstarting amount × (1 + p/100)
Several percentage changesstarting amount × first multiplier × next multiplier

For example, a 20% discount on 74 dollars leaves 80%, so the price is 74 × 0.80 = 59.20 dollars. A 15% added charge on 52 dollars gives 52 × 1.15 = 59.80 dollars, whereas the charge alone is 52 × 0.15 = 7.80 dollars.

When changes happen one after another, update the base at every step. An item priced at 90 dollars with 20% off and then 5% tax becomes 90 × 0.80 × 1.05 = 75.60 dollars. The tax is applied to the discounted price. Multiplying the two factors is enough; reversing their order gives the same product, although the story still determines what each factor means.

Common traps

Tempting routeHow to reject it
Using p/100 when the question asks for the full amount after a chargeThat calculation finds only the amount added. Use 1 + p/100 when the starting amount must remain in the total.
Subtracting a tip or service chargeA charge is an increase, so its final multiplier is greater than 1. A multiplier below 1 belongs to a reduction.
Adding or subtracting successive rates to make one net rateThe later percentage uses an updated base. Write one multiplier for each change and multiply them instead. Equal decrease and increase rates do not cancel.
Stopping after the discount when another charge followsThe discounted amount is only an intermediate value. Check the wording for every later change before treating it as final.
Subtracting the percentage number as though it were a money amountA rate has no dollar value until it is multiplied by its base. Find p/100 of the price before subtracting the saving.

Try it

Question 97

A pair of shoes costs 80 dollars before a 25% discount. What is the sale price? Enter the amount in dollars.

Question 101

A cafe bill is 36 dollars. What is the amount of an 18% tip? Enter the amount in dollars.

Question 108

A concert ticket costs 125 dollars before a 16% service charge. What is the total after the charge? Enter the amount in dollars.

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Discounts, tax and tips: choose the right multiplier · Questena