Calculating Successive Percent Change

Sample Problem: Jeans are on sale for 40% off the retail price. The retail price is $40.00. If you have a coupon, you can receive an additional 20% off the sale price. What is the overall percentage savings?

Calculating Successive Percent Change

Sample Problem: Lets look at the key words in the problem:
Jeans are on sale for 40% off the retail price. The retail price is $40.00. If you have a coupon, you can receive an additional 20% off the sale price. What is the overall percentage savings?

Successive Percentage Change

40 35 30 25 20 15 10 5 0
$16.00 $40.00 $20.80

Dollars ($)

$4.80 $24.00 $19.20 $19.20

Savings with discount Price Consumer Pays

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Calculating Successive Percent Change

(1 P1) * (1 P2) 1 P1 = first percentage increase or decrease P2 = second percentage increase or decrease

Calculating Successive Percent Change

(1 0.4) * (1 0.2) 1 = -0.52 (-52%) P1 = first percentage increase or decrease P2 = second percentage increase or decrease

Calculating Successive Percent Change

A politician promises, If elected, I will cut your taxes by 20% for each of the first three years of my term, for a total of 60%. Evaluate the promise.

Calculating Successive Percent Change

Spot prices for crude oil are rather volatile. From 1998 to 1999, spot prices for crude oil decreased by 28%. From 1999 to 2000, they increased by 106%. What was the percentage change over the two year period from 1998 to 2000?