POPStudying

Pearson Edexcel 4MA1 IGCSE  ·  Topic G6.4  ·  Higher tier

G6.4 Repeated Percentage Change

Image  ·  914 × 270

01 — Explanation

Why can't I just add the percentages together?

Because each change applies to the new value, not the original — the base shifts every step. A 20% decrease followed by a 30% decrease is not a 50% decrease.

Common Mistake: On £100, a 20% decrease gives £80, then a 30% decrease on £80 gives £56 — an overall decrease of 44%, not 50%. Adding percentages always overestimates a combined decrease (and underestimates a combined increase).

02 — Explanation

How do I use the multiplier method for several changes in a row?

Convert every percentage change to a decimal multiplier: an increase of R%R\% is ×(1+R100)\times\left(1+\frac{R}{100}\right), a decrease is ×(1−R100)\times\left(1-\frac{R}{100}\right). Chain the multipliers together — either step by step, or combine them first.

£80 increased by 10%, then that result discounted by 15%: multiplier =1.10×0.85=0.935=1.10 \times 0.85 = 0.935, so final price =£80×0.935=£74.80= £80\times 0.935 = £74.80 (an overall 6.5% decrease).

03 — Explanation

How do I use compound interest and depreciation formulas?

Both are just the multiplier applied nn times:

Compound interest: A=P(1+r100)nDepreciation: A=P(1−r100)n\text{Compound interest: } A = P\left(1+\frac{r}{100}\right)^n \qquad \text{Depreciation: } A = P\left(1-\frac{r}{100}\right)^n

£18,000 car depreciating 30% in year 1, then 14% in each of years 2 and 3: 18000×0.70×0.862=£9318.9618000 \times 0.70 \times 0.86^2 = £9318.96. Rates don't have to be equal each year — just multiply each year's multiplier in sequence.

Exam Tip: this formula usually isn't printed on the exam paper, so know it from the multiplier method rather than relying on recall of the formula sheet.

04 — Explanation

How do I work backwards to find the original value?

Rearrange Final=Original×(multiplier)n\text{Final} = \text{Original} \times (\text{multiplier})^n to Original=Final(multiplier)n\text{Original} = \dfrac{\text{Final}}{(\text{multiplier})^n}.

A car depreciates 35% a year; it's worth £5460 after 1 year. Find its value a year earlier: multiplier =0.65=0.65, so original =54600.65=£8400=\dfrac{5460}{0.65}=£8400.

Common Mistake: don't increase/decrease the final value by the percentage again — that reverses the wrong operation. Always divide by the multiplier, never multiply the final value by it a second time.

05 — Explanation

How do I find the rate or the number of years, if those are unknown?

Unknown rate: isolate the multiplier, then take the nnth root. A car's value halves in 5 years: M5=0.5⇒M=0.55≈0.8706M^5 = 0.5 \Rightarrow M = \sqrt[5]{0.5} \approx 0.8706, so the annual decrease is (1−0.8706)×100≈12.9%(1-0.8706)\times100 \approx 12.9\%.

Unknown number of years: isolate (multiplier)n(\text{multiplier})^n and use trial and improvement, since solving for nn directly needs logarithms (not on this syllabus). £4500 grows to £5469.78 at 5% p.a.: (1.05)n=1.2155(1.05)^n = 1.2155; try n=3n=3 (too low, 1.1581.158), try n=4n=4 (matches, 1.21551.2155) — so n=4n=4 years.

06 — Explanation

How does scaling a length affect area and volume?

If every linear dimension is scaled by multiplier MM, area scales by M2M^2 and volume scales by M3M^3 — this links percentage change directly to geometry.

A circle's radius increases by 8%: find the % increase in area. Linear multiplier 1.081.08; area multiplier =1.082=1.1664=1.08^2=1.1664, so area increases by 16.64%16.64\%.

Reverse direction: if volume increases by 25%, the linear multiplier is 1.253≈1.0772\sqrt[3]{1.25}\approx1.0772 — a 7.72%7.72\% increase in side length (3 s.f.).

07 — Worked example

Worked exam-style question

Mia invests £4000 for 3 years: 3% p.a. in year 1, then x%x\% p.a. for years 2–3. She has £4413.45 at the end. Find xx.

  1. After year 1: 4000×1.03=£41204000 \times 1.03 = £4120.
  2. This grows at x%x\% for 2 years: 4120×M2=4413.454120 \times M^2 = 4413.45, so M2=4413.454120=1.071225M^2 = \dfrac{4413.45}{4120} = 1.071225.
  3. M=1.071225=1.035M = \sqrt{1.071225} = 1.035, so x=3.5x = 3.5.

Multi-stage rate problems like this always split into "known stage → forward calculation" then "unknown stage → reverse/root calculation."