Percent of Change Problems



In percent of change problems, some quantity either increases or decreases from its original number; we must find the percent of change from the original number to the new number. We'll look at a problem and solve it using two different methods.
 
 

Frank bought a new television set on sale. If the TV's original price was $200 and Frank paid $170 for the TV, what was the percent of decrease?



Method 1: A pure algebraic approach

  1. The unknown in this problem is the percent of decrease. A percent of decrease is the percentage of the original price that was deducted from the original price to obtain the sale price. We could write a "word equation" for this process like this:

    original price - (percent of decrease)(original price) = sale price



    Since the percent of decrease is the unknown in this problem, we'll call the percent of decrease x%.

    Here's what we know so far:

    The original price was $200

    The sale price was $170

    The percent of increase was x%
     
     

  2. Putting this information in our word equation gives us an algebraic equation:

    200 - (x%)(200) = 170

    What do we do with the percent sign in this equation? "Percent" means "out of 100", so x% means x out of 100, or . Now we have this:

    200 - (200) = 170


  3. Now we'll solve our equation:

    200 - (200) = 170

    200 - 2x = 170

    -2x = -30

    x = 15

    So the percent of decrease is 15%


 
 

Method 2: A method involving pure arithmetic.

If we know the original price and the sale price, we can find the percent of decrease in two steps:

  1. Find the amount of decrease
  2. Divide the amount of decrease by the original amount
This will give us the percent of decrease (written as a decimal number). We can then write the decimal as an equivalent percent to find our final answer.
 
 

Let's use method 2 on the same problem:

Frank bought a new television set on sale. If the TV's original price was $200 and Frank paid $170 for the TV, what was the percent of decrease?



First, let's find the amount of decrease:

Amount of decrease = 200 - 170 = 30 So the price decreased by $30.
 
 

Next, we'll find the percent of decrease, and rewrite the decimal answer as a percent:

Percent of decrease = = .15 = 15%
So the percent of decrease is 15%
 
 

Before we leave the problem, let's check our answer:

Original price = $200

Price reduced by 15% of original price = 200(.15) = $30

Sale price would then be = $200 - $30 = $170

Our answer checks. We're done!