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Successive percentage changes: multiply each stage

About 4 min

Questions stay in the language in which they were published.

These questions apply two percentage changes in sequence and ask for a final value or an overall change. Each stage has a new base, so the reliable method is to build and multiply a chain of multipliers.

Build the multiplier chain

Read the changes in order. Replace a rise of p% by 1 + p/100 and a fall of p% by 1 - p/100, then multiply the starting value by every multiplier. For example, a starting value of 250 followed by a 12% rise and a 5% fall becomes 250 × 1.12 × 0.95 = 266. The second change acts on 280, the value after the first stage, not on 250.

To find the overall percentage change without a starting value, multiply only the change multipliers. In the example, 1.12 × 0.95 = 1.064. Because the product is 0.064 above 1, the overall result is a 6.4% increase. A product below 1 represents a decrease; subtract it from 1 and convert the difference to a percentage. A product equal to 1 means the changes exactly restore the start.

SignalAction
Rise by p%Multiply by 1 + p/100
Fall by p%Multiply by 1 - p/100
Several changesMultiply all stage multipliers
Overall change requestedCompare the multiplier product with 1

The traps

Tempting routeHow to reject it
Add or subtract the stated ratesThat keeps the starting value as the base for both stages. The later rate acts on an updated value, so multiply the stage multipliers instead.
Assume equal opposite rates cancelA fall after a rise is taken from a different base. Check the product of the two multipliers; equal numerical rates usually leave a product below 1.
Stop after the first change or apply only the secondA successive-change result must include every stated stage. Write one multiplier per stage before doing any arithmetic.
Read a multiplier of 1.50 as a 150% increaseThe whole starting value accounts for 100%. Only the amount above 1 is the increase, so compare the product with 1.

Try it

Question 73

A workshop makes 200 parts a day. Output grows by 10% in one month and by another 10% the next month. Enter the final number of parts per day.

Question 75

A soup recipe uses 80 millilitres of cream. A chef increases it by 25%, then reduces the new amount by 20%. Enter the final number of millilitres.

Question 78

A bus route carries 1000 riders. Ridership increases by 8%, then the updated number increases by 5%. Enter the final number of riders.

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Successive percentage changes: multiply each stage · Questena