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SAT percentages: identify the reference quantity

Identify the reference quantity, calculate percentage increases or decreases, and check what the result means.

SAT RISE · AI-assisted guide · Updated

The idea

A percentage expresses a quantity per hundred of a reference quantity. For a percentage change, identify the original quantity first: a decrease of p percent multiplies it by 1 − p/100, and an increase multiplies it by 1 + p/100.

A step-by-step method

  1. Identify the original quantity and whether the change is an increase or a decrease.
  2. Convert the percentage to a decimal and calculate the change, or use the corresponding multiplier.
  3. Check the units and whether the result should be greater or smaller than the original quantity.

Worked example

Attempt this original question, then open the reasoning to compare your approach.

A jacket originally costs $80. Its price is reduced by 25%. What is the new price?

  1. $20
  2. $55
  3. $60
  4. $100
Show answer and reasoning

Answer: C · $60

The discount is 0.25 × $80 = $20.

Subtract the discount: $80 − $20 = $60. Equivalently, 0.75 × $80 = $60.

Why each option works or fails

  1. $20 is the discount, not the new price.
  2. Subtracting 25 dollars treats a percentage as a dollar amount.
  3. Correct: the new price is 75% of $80.
  4. This adds the 25% change instead of subtracting it.

Try a new question

Work independently before opening the explanation. Check what changed and whether the same rule still applies.

A store increases the price of an item by 20%, then reduces the increased price by 25%. The final price is $144. What was the price before either change?

  1. $144
  2. $151.58
  3. $160
  4. $192
Show answer and reasoning

Answer: C · $160

Let P be the original price. The successive multipliers give 0.75(1.20P) = 0.90P.

Thus 0.90P = 144, so P = 160. Check: $160 increases to $192, then decreases by $48 to $144.

The percentages use different reference prices. Their combined effect is a 10% decrease, not 25% − 20% = 5%.

Why each option works or fails

  1. This ignores the changes.
  2. This incorrectly combines the changes into a 5% decrease.
  3. Correct: 160 × 1.20 × 0.75 = 144.
  4. $192 is the intermediate price after the increase.

Common mistakes

  • The percentage applies to its stated reference quantity, not automatically to the final quantity.
  • A change from 20% to 25% is 5 percentage points, but a 25% relative increase in the percentage itself.

Sources and related guides

This guide was prepared with AI assistance. Its rules and worked examples were checked against the references below; no independent expert review is claimed. Examples are original and are not official SAT questions.

Revision: Original examples distinguish reference quantities in successive percentage changes.

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