Back to Percentage Foundation Home
3.2 I) Increasing or Decreasing by a Certain Percentage – Calculator: Part 2
3.2 I) Increasing or Decreasing by a Certain Percentage – Calculator: Part 2
In this section, we are going to have a look at a worded example, which will be similar to some of the questions that you will see in the quiz. The content in this section builds on the content that was discussed in the previous section. Therefore, make sure that you have worked through the previous section before working through this one (click here to be taken through to the previous section).
Example 1
I purchased a new car for £25,000. The value of the car decreases by 14.75% in the first year of owning the car. It then decreases 9% in value between year 1 and 2. What is the value of the car after the first year and what is the value of the car after the second year? Use the multiplier method to obtain your answer.
During the first year, the car decreased in value by 14.75%. We are going to work out the answer for this question by finding out what the multiplier is and multiplying our original price of the car by the multiplier value that we found. The car is decreasing in value and we know that to find the multiplier of something that is decreasing in value, we take the percentage decrease away from 100%.
I purchased a new car for £25,000. The value of the car decreases by 14.75% in the first year of owning the car. It then decreases 9% in value between year 1 and 2. What is the value of the car after the first year and what is the value of the car after the second year? Use the multiplier method to obtain your answer.
During the first year, the car decreased in value by 14.75%. We are going to work out the answer for this question by finding out what the multiplier is and multiplying our original price of the car by the multiplier value that we found. The car is decreasing in value and we know that to find the multiplier of something that is decreasing in value, we take the percentage decrease away from 100%.
We now need to convert this percentage into a multiplier value and we do this by dividing by 100. The multiplier value is 0.8525 (85.25% ÷ 100). We now have the multiplier and we can use it to obtain the value of the car after 1 year.
After 1 year, the car has a value of £21,312.50.
The next part of the question asks us to find out what the value of the car is after 2 years. We are told that the value of the car decreases by 9% between year 1 and year 2. As the value of the car decrease, we need to take the percentage decrease off from 100% to obtain the multiplier.
The next part of the question asks us to find out what the value of the car is after 2 years. We are told that the value of the car decreases by 9% between year 1 and year 2. As the value of the car decrease, we need to take the percentage decrease off from 100% to obtain the multiplier.
We divide this value by 100 to obtain the multiplier value, which is 0.91. The next step is to find the value of the car after 2 years, which we do by multiplying the multiplier value by the value of the car after 1 year.
The question is using money and this means that we must round to 2 decimal places because we cannot have part of a pence (the third decimal place in the above answer indicates part of a pence).
Therefore, the value of the car after year 2 is £19,394.38.
There are quite a few more questions in the quiz so give them ago! Click here to be taken through to the quiz.
There are quite a few more questions in the quiz so give them ago! Click here to be taken through to the quiz.