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 is , a decrease is . Chain the multipliers together — either step by step, or combine them first.
£80 increased by 10%, then that result discounted by 15%: multiplier , so final price (an overall 6.5% decrease).
03 — Explanation
How do I use compound interest and depreciation formulas?
Both are just the multiplier applied times:
£18,000 car depreciating 30% in year 1, then 14% in each of years 2 and 3: . 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 to .
A car depreciates 35% a year; it's worth £5460 after 1 year. Find its value a year earlier: multiplier , so original .
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 th root. A car's value halves in 5 years: , so the annual decrease is .
Unknown number of years: isolate and use trial and improvement, since solving for directly needs logarithms (not on this syllabus). £4500 grows to £5469.78 at 5% p.a.: ; try (too low, ), try (matches, ) — so years.
06 — Explanation
How does scaling a length affect area and volume?
If every linear dimension is scaled by multiplier , area scales by and volume scales by — this links percentage change directly to geometry.
A circle's radius increases by 8%: find the % increase in area. Linear multiplier ; area multiplier , so area increases by .
Reverse direction: if volume increases by 25%, the linear multiplier is — a 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 p.a. for years 2–3. She has £4413.45 at the end. Find .
- After year 1: .
- This grows at for 2 years: , so .
- , so .
Multi-stage rate problems like this always split into "known stage → forward calculation" then "unknown stage → reverse/root calculation."