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Successive percentage changes: the +10% then βˆ’10% trap

+10% then βˆ’10% 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 = **99βˆ—βˆ—,not99**, not 100.

You lost 1% along the way! Two opposite changes never cancel out.

The tool: the multiplier

An increase of +t%+t\% corresponds to a multiplier of 1+t/1001 + t/100. A decrease of βˆ’t%-t\% corresponds to a multiplier of 1βˆ’t/1001 - t/100.

To chain two changes, multiply the multipliers: TotalΒ multiplier=M1Γ—M2\text{Total multiplier} = M_1 \times M_2

Example: +20% then βˆ’15%

M=1.20Γ—0.85=1.02M = 1.20 \times 0.85 = 1.02

That’s a +2% total change.

Mental trick for two small changes

For Β±a%\pm a\% followed by Β±b%\pm b\% with small a,ba, b: Totalβ‰ˆ(a+b)%+(aΓ—b/100)%\text{Total} \approx (a + b) \% + (a \times b / 100) \%

Example: +10% then βˆ’10% β†’ (10βˆ’10)+(10Γ—(βˆ’10)/100)=βˆ’1(10 - 10) + (10 \times (-10) / 100) = -1%. βœ“

Mistake to NEVER make

You never add percentages!

+30% then +20% β‰  +50%.

Real answer: 1.30Γ—1.20=1.561.30 \times 1.20 = 1.56 β†’ +56%.

?Γ€ toi de jouer

An item drops 40% then rises 40%. What is the total change?

Mini-quiz

Question 1 / 3

An item costs $100. It goes up 20% then down 20%. What's the final price?

#percentage#multiplier#increase#decrease#change

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