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    pradeep_r54299
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    The document explains why calculating 80% of an amount after a 20% increase does not reveal the original value. Specifically, it provides an example where a radio originally cost £100, then increased 20% to £120. Calculating 80% of £120 as £120 x 0.80 equals £96, which does not match the original £100 price. The correct approach is to divide the increased amount (£120) by the percentage increase (1.20) to get back to the original value.

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    The document explains why calculating 80% of an amount after a 20% increase does not reveal the original value. Specifically, it provides an example where a radio originally cost £100, then increased 20% to £120. Calculating 80% of £120 as £120 x 0.80 equals £96, which does not match the original £100 price. The correct approach is to divide the increased amount (£120) by the percentage increase (1.20) to get back to the original value.

    Copyright:

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    Download as PDF, TXT or read online from Scribd
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    11 views1 page

    Help4 Excl

    Uploaded by

    pradeep_r54299
    The document explains why calculating 80% of an amount after a 20% increase does not reveal the original value. Specifically, it provides an example where a radio originally cost £100, then increased 20% to £120. Calculating 80% of £120 as £120 x 0.80 equals £96, which does not match the original £100 price. The correct approach is to divide the increased amount (£120) by the percentage increase (1.20) to get back to the original value.

    Copyright:

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    QUESTION: Why can’t I work out 80% of an amount to find out how

    much it was before 20% had been added on?

    COMMENTS

    Try the example below to illustrate the mistake more clearly.

    Example:

    Suppose a radio costs £100 originally and the price went up by 20%.

    The new cost would be then £100 x 1.20 = £120.

    If we now find 80% of £120 we calculate £120 x 0.80 = £96, which doesn’t work.

    NOTE: The correct way is to divide the £120 by 1.20.

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