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Price Change and New Price in Two Steps

Percentage is used very often in daily life. For example, when a shop is having a sale (say 30 % discount), or when the price of a bus ticket is increased by 6 %.

Let’s begin by rehearsing how to find the new price without thinking about percentages:


Discount and Price Increase

New price = Old price - discount

New price = Old price + price increase

I will deal with discounts given as a percentage first.

Example 1

A jacket used to cost $250, and is now sold at a 20% discount. What is the current price of the jacket?

You can do this in two steps the following way:

The discount is 20% ×$250 = 20 × 1 100 ×$250 = $50.

That gives you the new price Old price discount = $250 $50 = $200.

At other times, the price might be increasing by a given percentage. You find this new price in a similar way, you just have to add instead of subtracting.

Example 2

A monthly bus ticket used to cost $32, but then the price increased by 15%. What is the new price?

You can do this in two steps the following way:

The increase in price is 15% ×$32 = 15 100 ×$32 = $15 × 32 100 = $4.8.

The new price is $32 + $4.8 = $36.8.

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Finding Price Changes in One Step