Successive percentage changes: the +10% then β10% trap
+10% then β10% does NOT bring you back to the starting price. The multiplier trick that fixes this in 3 seconds.
The classic trap
An item costs $100.
- Increase 10%: new price $110.
- Decrease 10%: new price 110 Γ 0.9 = **100.
You lost 1% along the way! Two opposite changes never cancel out.
The tool: the multiplier
An increase of corresponds to a multiplier of . A decrease of corresponds to a multiplier of .
To chain two changes, multiply the multipliers:
Example: +20% then β15%
Thatβs a +2% total change.
Mental trick for two small changes
For followed by with small :
Example: +10% then β10% β %. β
Mistake to NEVER make
You never add percentages!
+30% then +20% β +50%.
Real answer: β +56%.
An item drops 40% then rises 40%. What is the total change?
Mini-quiz
Question 1 / 3An item costs $100. It goes up 20% then down 20%. What's the final price?
