Lesson 31

PERCENT INCREASE OR DECREASE

In the previous Lesson, we saw how to find what

percent one number is of another. In particular, we saw how
to solve problems that involve the expression out of. In this
Lesson, we will emphasize a second type of word problem.

In this Lesson, we will answer the following:

1. What are the two types of word problems in finding the
Percent?

Section 2
2. In a banking problem, what is the Amount and what is the
Base?

1. What are the two types of word problems in finding the

Percent?

1. An "out of" problem:

The part is what percent of the whole?

2. A difference problem:

The difference is what percent of the original?

Example 1. An "out of" problem. A team played 16 games and won 12.
a) What fraction of their games did they win?
b) What percent of their games did they win?
Solution. First, the student should appreciate the similarity of those questions.
a) The team won 12 "out of" 16 games:
12
.
16
We can always represent an "out of" problem by a proper fraction.
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4 is a common divisor of 12 and 16. The fraction reduces to .
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b) As for the percent of games they won, = 75%. (Lesson 24.)
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Example 2. A difference problem. Jimmy got a raise from $6.00 an hour to
$8.00 an hour. This was a raise of what percent?
Solution. The previous example was an out of problem. This one is
a difference problem because something has changed -- his salary. In an out
of problem, nothing changes.
To find what percent of a raise, we must first find how much of a raise. In
this case, it was a raise of $2.00. His original salary was $6.00. The question is,
"The difference is what percent of the original?
$2.00 is what percent of $6.00?
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Now, $2 is a third of $6. (Lesson 15.) And a third is 33 %. (Lesson 16,
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Question 7.)
1
Jimmy's salary was increased by 33 %.
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"Difference problem" is shorthand for "Percent increase or decrease."
In a difference problem, we must answer this question:

The difference is what percent of the original?

Example 3. Sandra bought a stock for $30, and she sold it for $36. She made a
profit of what percent?
Solution. The difference -- $6 -- is a fifth, or 20% (Lesson 15), of the original
$30. Sandra made a profit of 20%.
If, on the other hand, she had sold it for $24 -- which again is a difference of
$6 -- then she would have lost 20%.
Example 4. A cookbook was reduced from $24.50 to $17.95. This was a
reduction of what percent?
Solution. Again, this is a difference problem because something has changed -- the
price of the book.
To find the difference with a calculator, press

24.5-17.95=
It is not necessary to enter the 0's on the right of a decimal.
See
6.55

The original price was $24.50. Press

2
24.5%
(Lesson 14.) See
26.73469
On rounding off to one decimal digit, this is approximately
26.7%.
With a simple calculator, the entire problem can be done at once by pressing
24.5-17.9524.5%

"The difference divided by the original."

On some calculators, it is necessary to press = after each calculation; that is, before
pressing .
Example 5. Sarah earns $1800 a month and pays $430 for rent. What percent of
her income goes for rent?
Solution. Is this a difference problem or an out of problem? Do we subtract or
not?
This is an out of problem because nothing has changed. There has been no
increase or decrease in her rent. The problem means that Sarah pays $430 out
of $1800 for rent.
With a calculator, press

4301800%
Displayed is
23.888888
On rounding off to one decimal digit, this is approximately
23.9%.
In an "out of" problem, divide the smaller number by the larger; the part by
the whole .
Example 6. Which of these is an out of problem, and which is
a difference problem?
1. Janet's salary is $400 a week, and she pays $53 in taxes. What percent goes for
taxes?
2. Janet's salary increased from $400 a week to $440. This was an increase of what
percent?
Answer. Problem 1 is an out of problem. For we could restate it:
Janet pays $53 out of $400 in taxes.

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 Problem 2 is a difference problem because something has changed: her salary.
To find how much it has changed, we must subtract.
(If we tried to restate Problem 2 using the expression "out of," it would make
no sense )
Let us answer Problem 2:
Janet's salary, in going from $400 to $440, increased by $40. The question is,
$40 is what percent of the original $400?
$40 is a tenth or 10% of $400. Her salary increased by 10%.

Now, if her salary had gone from $400 to $360, then it would have decreased
by $40. It would have decreased by the same 10%.

Summary

Every question that asks, "What percent is . . .?"

can be rephrased in the standard form:

is what percent of ?

In an out of problem, that question becomes:

The part is what percent of the whole?

In a difference problem, that question is:

The difference is what percent of the original?

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 PERCENT INCREASE OR DECREASE
PROBLEMS

11. In Problems 1 and 2, first ask this question:

____ is what percent of ____ ?

11. "Out of" problem

11. a) 9 out of 50 students were absent. What percent were absent?
11. a) Ask the following question.
9 is what percent of 50 ?

11. a) Now answer that question. 18%

11. b) 1000 people were surveyed, and 456 responded Yes. What
11. b) percent responded Yes?
11. a) Ask the following question.
456 is what percent of 1000 ?

11. a) Now answer that question. 45.6%

11. c) In a group of 200 people, 84 were of blood group A. What

11. c) percent were of blood group A?
11. a) Ask the following question.
84 is what percent of 200 ?

11. a) Now answer that question. 42%

11. d) Anna earns $450 a week, and she pays $45 in taxes. What percent
11. d) goes for taxes?
11. a) Ask the following question.
$45 is what percent of $450 ?

11. a) Now answer that question. 10%

12. Difference problem. In each of the following, there was a change

12. of what percent?
First, ask this question:
The difference is what percent of the original?
12. a) A sweater was marked down from $40 to $30.
12. a) This was a difference of what percent?
11. a) Ask the following question.
$10 is what percent of $40 ?
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 11. a) Now answer that question. 25%

12. b) A sweater was marked up from $40 to $50.

12. b) This was a difference of what percent?
11. a) Ask the following question.
$10 is what percent of $40 ?

11. a) Now answer that question. 25%

12. c) Last month's bill was $60, while this month's is $90.
12. a) This was a difference of what percent?
11. a) Ask the following question.
$30 is what percent of $60?

11. a) Now answer that question. 50%

12. d) Last month's bill was $60, while this month's is $120.
12. a) This was a difference of what percent?
11. a) Ask the following question.
$60 is what percent of $60 ?

11. a) Now answer that question. 100%

12. e) Marilyn's rent went from $500 to $440.

12. a) This was a difference of what percent?
11. a) Ask the following question.
$60 is what percent of $500 ?

11. a) Now answer that question. 12%

12. f) Marilyn's rent went from $500 to $560.

12. a) This was a difference of what percent?
11. a) Ask the following question.
$60 is what percent of $500 ?

11. a) Now answer that question. 12%

12. g) The price of a stock went from $32 to $36.

12. a) This was a difference of what percent?
11. a) Ask the following question.
$4 is what percent of $32 ?

11. a) Now answer that question. 12%

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12. h) The price of a stock went from $32 to $28.
12. a) This was a difference of what percent?
11. a) Ask the following question.
$4 is what percent of $32 ?

11. a) Now answer that question. 12%

12. i) A population grew from 100,000 in 1980 to 116,000 in 1990.

12. a) This was a difference of what percent?
11. a) Ask the following question.
16,000 is what percent of 100,000 ?

11. a) Now answer that question. 16%

12. j) A population decreased from 240,000 in 1985 to 210,000 in 1995.

12. a) This was a difference of what percent?
11. a) Ask the following question.
30,000 is what percent of 240,000 ?

11. a) Now answer that question. 12%

Calculator Problems

13. (Is each one an "out of" problem or a "difference problem"?)

13. Celia's monthly rent is $487.52. She earns $1,845.34 a month.

13. What percent of her income goes for rent? 26.4%

14. Henry's rent was reduced from $751.12 a month to $732.50. This
14. was a reduction of what percent? 2.5%

15. At Merrytime College, there are 9,312 students, and 2,195 are
15. freshmen. What percent are freshmen? 23.6%

16. A skirt that usually sells for $42.50 is on sale for $32.50. This is a
16. discount of what percent? 23.5%

17. Alfred earns $502.27 per week, and his taxes are $84.12. What
17. percent goes for taxes? 16.7%

18. Alfred earns $502.27 per week, but he takes home $418.15. What
18. percent is deducted? 16.7%

19. Jane's bank account grew from $2,175 to $3,011. This was an
19. increase of what percent? 38.4%

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10. Jane had $2,175 in the bank, and she withdrew $478.25. What
10. percent did she withdraw? 22.0%

11. A jacket that last year sold for $65, this year costs $72. This was an
11. increase of what percent? 10.8%

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 PERCENT INCREASE OR DECREASE
ANSWERS

11. In Problems 1 and 2, first ask this question:

____ is what percent of ____ ?

11. "Out of" problem

11. a) 9 out of 50 students were absent. What percent were absent?
11. a) Ask the following question.
9 is what percent of 50 ?

11. a) Now answer that question. 18%

11. b) 1000 people were surveyed, and 456 responded Yes. What
11. b) percent responded Yes?
11. a) Ask the following question.
456 is what percent of 1000 ?

11. a) Now answer that question. 45.6%

11. c) In a group of 200 people, 84 were of blood group A. What

11. c) percent were of blood group A?
11. a) Ask the following question.
84 is what percent of 200 ?

11. a) Now answer that question. 42%

11. d) Anna earns $450 a week, and she pays $45 in taxes. What percent
11. d) goes for taxes?
11. a) Ask the following question.
$45 is what percent of $450 ?

11. a) Now answer that question. 10%

12. Difference problem. In each of the following, there was a change

12. of what percent?
First, ask this question:
The difference is what percent of the original?
12. a) A sweater was marked down from $40 to $30.
12. a) This was a difference of what percent?
11. a) Ask the following question.
$10 is what percent of $40 ?
9
 11. a) Now answer that question. 25%

12. b) A sweater was marked up from $40 to $50.

12. b) This was a difference of what percent?
11. a) Ask the following question.
$10 is what percent of $40 ?

11. a) Now answer that question. 25%

12. c) Last month's bill was $60, while this month's is $90.
12. a) This was a difference of what percent?
11. a) Ask the following question.
$30 is what percent of $60?

11. a) Now answer that question. 50%

12. d) Last month's bill was $60, while this month's is $120.
12. a) This was a difference of what percent?
11. a) Ask the following question.
$60 is what percent of $60 ?

11. a) Now answer that question. 100%

12. e) Marilyn's rent went from $500 to $440.

12. a) This was a difference of what percent?
11. a) Ask the following question.
$60 is what percent of $500 ?

11. a) Now answer that question. 12%

12. f) Marilyn's rent went from $500 to $560.

12. a) This was a difference of what percent?
11. a) Ask the following question.
$60 is what percent of $500 ?

11. a) Now answer that question. 12%

12. g) The price of a stock went from $32 to $36.

12. a) This was a difference of what percent?
11. a) Ask the following question.
$4 is what percent of $32 ?

10
 11. a) Now answer that question. 12%

12. h) The price of a stock went from $32 to $28.

12. a) This was a difference of what percent?
11. a) Ask the following question.
$4 is what percent of $32 ?

11. a) Now answer that question. 12%

12. i) A population grew from 100,000 in 1980 to 116,000 in 1990.

12. a) This was a difference of what percent?
11. a) Ask the following question.
16,000 is what percent of 100,000 ?

11. a) Now answer that question. 16%

12. j) A population decreased from 240,000 in 1985 to 210,000 in 1995.

12. a) This was a difference of what percent?
11. a) Ask the following question.
30,000 is what percent of 240,000 ?

11. a) Now answer that question. 12%

Calculator Problems

13. (Is each one an "out of" problem or a "difference problem"?)

13. Celia's monthly rent is $487.52. She earns $1,845.34 a month.

13. What percent of her income goes for rent? 26.4%

14. Henry's rent was reduced from $751.12 a month to $732.50. This
14. was a reduction of what percent? 2.5%

15. At Merrytime College, there are 9,312 students, and 2,195 are
15. freshmen. What percent are freshmen? 23.6%

16. A skirt that usually sells for $42.50 is on sale for $32.50. This is a
16. discount of what percent? 23.5%

17. Alfred earns $502.27 per week, and his taxes are $84.12. What
17. percent goes for taxes? 16.7%

18. Alfred earns $502.27 per week, but he takes home $418.15. What
18. percent is deducted? 16.7%

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19. Jane's bank account grew from $2,175 to $3,011. This was an
19. increase of what percent? 38.4%

10. Jane had $2,175 in the bank, and she withdrew $478.25. What
10. percent did she withdraw? 22.0%

11. A jacket that last year sold for $65, this year costs $72. This was an
11. increase of what percent? 10.8%

12