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Number & proportional reasoning / LESSON 03

Budgets, discounts and percent change · GED Math

10 min + practice · Original foundation lesson

Percent means a number out of one hundred, but a percent calculation is incomplete until you identify its base. A discount is measured against the original price; a later tax may use a different base.

A reliable method

Write an increase as a multiplier above one and a decrease as a multiplier below one. To reverse a percent change, divide by the multiplier that was applied.

The common trap

A ten percent discount followed by a ten percent increase does not return to the starting price. The second percentage uses a smaller base.

Check and transfer

Use simple interest only when the prompt specifies that interest is calculated on the original principal. Compound growth uses a changing balance and a different model.

Worked comparison: why the alternative fails

A $60 price after a 25% discount solves 0.75p = 60, so p = 80. Adding 25% of 60 gives 75, which fails: 75×0.75 = 56.25. Reversing an operation requires dividing by its multiplier.

Transfer and explain

A $100 account earns 5% simple interest for 3 years: interest is $15, ending balance $115. State which of these two quantities the question requests.

WORKED EXAMPLE

A tool priced at $100 is discounted by 15%. What is the sale price before tax, in dollars?

  1. A 15% discount leaves 85% of the original price.
  2. Apply the multiplier to the original price, not to the discount amount.
  3. The requested value is 85. Check its units and meaning against the original question.
Answer: 85
Compare the other answer choices
15

Report the discount amount instead of the amount paid.

115

Apply a markup instead of a discount.

17/20

Convert the percent to a decimal twice.

Try it, then explain it.

Complete a short set without looking at the example. After each answer, explain which operation preserved the relationship and why the result makes sense.

Practice this skill

Sources & authorship

Original Slope explanations and examples. References support the concepts; they are not the source of copied questions. Independent educator review is pending.

GED Mathematical Reasoning overviewSiyavula Grade 10 mathematics foundation reference