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NSWMaths Standard 2Quick questions

Year 11: Financial Mathematics

Quick questions on GST and percentage change for HSC Maths Standard 2

4short Q&A pairs drawn directly from our worked dot-point answer. For full context and worked exam questions, read the parent dot-point page.

What is adding the GST?
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To add the 10%10\% GST you can find 10%10\% and add it on. It is faster and safer, though, to multiply the pre-GST price by 1.11.1 in a single step. This works because 100%100\% of the price plus another 10%10\% is 110%=1.1110\% = 1.1. A plumber who quotes $680 excluding GST adds 0.10×680=680.10 \times 680 = 68, i.e.
What are working backwards?
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The trap that catches the most students is going backwards from a price that already includes GST. Suppose a receipt total is $88.00, GST included. The GST is not 10%10\% of $88; that would give $8.80, which is too much. The $88 is 110%110\% of the pre-GST price, so the pre-GST price is 88÷1.1=8088 \div 1.1 = 80, i.e.
What is percentage change as a multiplier?
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A percentage increase or decrease is the same idea as adding GST, just with a different rate. To change an amount by rr (the rate as a decimal), multiply by (1+r)(1 + r) to increase or (1r)(1 - r) to decrease. The number you multiply by is the multiplier. A $1450 laptop discounted by 30%30\% keeps 100%30%=70%100\% - 30\% = 70\% of its price, so the sale price is 1450×0.70=10151450 \times 0.70 = 1015, i.e.
What are successive percentage changes?
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When two or more percentage changes happen one after another, you apply each to the result of the previous one, never to the original. The clean way is to multiply the multipliers together. This is where students lose marks by adding percentages, which is always wrong. You see this stacking everywhere.

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