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Cambridge IGCSE Mathematics — 0580 Extended

Topic 1.12: Number — Percentages

Multipliers — the core method

Instead of finding a percentage then adding, use a multiplier:

ChangeMultiplierExample on 200
Increase 15%× 1.15200 × 1.15 = 230
Decrease 15%× 0.85200 × 0.85 = 170
Find 15% of× 0.15200 × 0.15 = 30

Method

  1. Convert the percentage to a multiplier (100% + p% → \(1 + p/100\)).
  2. Multiply the original amount by the multiplier.
  3. For repeated changes, multiply all multipliers together.

Forward vs reverse percentages

Which method?

You know the original and the percentage change

Forward: multiply by the multiplier.

You know the final amount after a percentage change

Reverse: divide by the multiplier to find the original.

Express A as a % of B

Calculate \(\dfrac{A}{B} \times 100\). Can exceed 100% if A > B.

A price is increased by 20% to £144. Find the original price.

Worked solution: 144 after a 20 percent increase means the original price is 120 pounds
Divide by the 20% increase multiplier: \(144 \div 1.20 = £120\)

A shop buys goods for £80 and sells them for £110. Find the profit as a percentage of the cost price.

Worked solution: profit 30 on cost 80 is 37.5 percent
Profit over cost: \(\dfrac{30}{80} \times 100 = 37.5\%\)

Simple and compound interest

Formulas are not given in the exam — learn them.

Simple interest: interest is calculated on the original amount only each year.

\[I = P \times r \times t \qquad A = P + I = P(1 + rt)\]

where \(P\) = principal, \(r\) = rate as a decimal, \(t\) = time in years.

Compound interest: interest is added to the balance each period; the next interest is calculated on the new total.

\[A = P \times (1 + r)^t\]

£2500 is invested at 4% simple interest per year for 3 years. Find the total amount.

Worked solution: 2500 at 4 percent simple interest for 3 years is 2800 pounds
Simple interest \(I = 2500 \times 0.04 \times 3 = 300\), so \(A = £2800\)

£2500 is invested at 4% compound interest per year for 3 years. Find the total amount.

Worked solution: 2500 times 1.04 cubed equals 2812.16 pounds
Compound: \(2500 \times (1.04)^3 = £2812.16\)

Deposits, discounts and repeated change

Deposit: pay a percentage upfront; the rest is the balance. E.g. 15% deposit on £800 → deposit = 120, balance = 680.

Discount: multiply by (1 − discount rate). A 30% discount → × 0.70.

Repeated percentage change: multiply multipliers. E.g. +10% then −10% → × 1.10 × 0.90 = × 0.99 (not back to start).

Paper 2 (non-calculator)

Know common equivalents: 10% = ÷ 10; 5% = half of 10%; 20% = ÷ 5; 25% = ÷ 4. For reverse % without a calculator: if final is 115% of original, divide by 1.15.

Try this

An item costing £400 is reduced by 15%, then a further 10% in a sale. Find the final price.

Show answer
Answer
  1. 15% decrease multiplier is 0.85; then 10% decrease is 0.90

    \[ 400 \times 0.85 \times 0.90 \]
  2. Combine the multipliers first

    \[ 0.85 \times 0.90 = 0.765 \]
  3. Final price

    \[ 400 \times 0.765 = £306 \]

Exam Traps

  • +10% then −10% is not back to the start: \(1.10 \times 0.90 = 0.99\), so the result is 1% lower.
  • If a price has already been increased, find the original by dividing by the multiplier — do not subtract the percentage of the new price.

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