Pretend it is 100: a mental math trick
When to use it: A percent question gives no amounts at all.
Worked example
- Start with 100, or $100.
- Apply each change in order.
- Read the answer off your numbers: the gap from 100 is the percent change. A margin is profit ÷ price.
A price goes up 10%, then down 10%. What is the overall change, in percent?
- 100 up 10% is 110.
- 110 down 10% is 99.
- 99 is 1 below 100: a 1% drop.
Answer: −1%
Try three
-
A price goes up 20%, then down 25%. What is the overall change, in percent?
Show the answer
−10%
-
A price goes down 20%, then up 10%. What is the overall change, in percent?
Show the answer
−12%
-
A price goes down 20%, then up 25%. What is the overall change, in percent?
Show the answer
0%