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Reverse percentages

Reverse percentages help us to work out the original price or value of an item after it has been increased or decreased in value, for example, following a price increase or a sale.

Calculating reverse percentages

Calculating reverse percentages depends on knowing that before an increase or decrease in price, an item is always worth 100% of its value, no matter what that value is. This is because 100% represents the whole amount or the full price.

Example

A shop has a sale where 20% is taken off all prices. A top is now worth £24. What price was it originally?

A common mistake is to work out 20% of £24 and add this on to £24. This will not work as 20% of £24 is not as much proportionally as 20% of the bigger, original amount.

The original price of the top is unknown, but no matter what this price was, this is 100% of the value. The shop has then reduced prices by 20%. This means that 80% of the value of the top remains (\(100 \% - 20 \% = 80 \%\)) and this is worth £24.

To find the original price of the item, 100% has to be found. There are many ways to do this, but using a is a method that will always work.

80% = 24

Divide both sides by 80 to get 1%: \(1 \% = 24 \div 80 = 0.3\)

Multiply both sides by 100 to get 100%: \(100 \% = 0.3 \times 100 = 30\)

100% of the value of the top is worth £30 which means before the sale of 20%, the top cost £30.

This answer can be tested by taking 20% off £30. If the answer is £24, then the method and answer are correct.

\(\pounds 30 - 20 \% = \pounds 30 - \pounds 6 = \pounds 24\)

Question

An antique is sold for £550 which is a 10% increase on the price that it was originally bought for. How much was the antique originally bought for?