Example 1: Chain two percent changes
A shirt's price is increased by 20 percent and, a month later, the new price is decreased by 25 percent. The final price is what percent of the original price?
Show solution
- Write each change as a multiplier: up 20 percent is 1.20, down 25 percent is 0.75.
- Multiply the multipliers: 1.20 x 0.75 = 0.90.
The order does not matter for multiplication; the result would be the same if the decrease came first.
- Interpret: the final price is 90 percent of the original, a net decrease of 10 percent.
- Check with a number: 80 dollars becomes 96 after the increase and 72 after the decrease, and 72/80 = 0.90. Correct.
Answer: 90 percent of the original price