Ch 6 · 1.13, 1.17 Percentages and Exponential Growth and Decay · IGCSE Mathematics 0580
Topic 6 of 6 in Number — IGCSE Mathematics 0580 — 58 lessons.
Introduction
Sales, interest on savings, a car losing value, a city growing each year: percentages are everywhere in money and populations. The key tool is the multiplier: a 15% increase is × 1.15, a 12% decrease is × 0.88. Repeat the multiplier and you get exponential growth or decay. (Syllabus sections 1.13 and 1.17.)
Key ideas — Basic percentages
Percentages may be over 100%, and appear as deposits, discounts, profit and loss, and earnings.
🧑🏫 Teacher's explanation
Think of a percentage as a way of slicing a pie into 100 equal pieces. If you have 15\% of a pie, you have 15 of those tiny slices. When we calculate a percentage of a quantity, we are essentially finding out what that 'slice' is worth in real numbers. For example, 15\% of 80 is just 15/100 of 80, which simplifies to 0.15 × 80 = 12.
📖 Definitions
🔍 Worked example — Easy
Calculate the percentage decrease from 80 to 60.
🔍 Worked example — Standard
A laptop is sold for \450 after a 10\%$ discount. Calculate the original price.
🔍 Worked example — Exam-style
A population of bacteria increases by 5\% every hour. If the initial population is 2000, find the population after 3 hours.
⚠️ Common errors
🧠 Quick check 1
🧠 Quick check 2
🎯 Exam question
Key ideas — Multipliers
Increase by r\%: multiply by 1 + r/100. Decrease by r\%: multiply by 1 - r/100. A price of \$40 increased by 15% is 40 × 1.15 = \46.
🧑🏫 Teacher's explanation
When we talk about percentage changes, we are essentially talking about how much of the original amount remains or how much extra is added. Instead of calculating the 'increase amount' and then adding it back to the original, we can use a single number called a 'multiplier' to do the job in one step. Think of it like a scale: if you want to increase something by 10\%, you are keeping 100\% of what you have and adding 10\%, giving you 110\% total. In decimal form, that is 1.10.
📖 Definitions
🔍 Worked example — Easy
A shop increases the price of a jacket from \80 by 15\%. Calculate the new price.
🔍 Worked example — Standard
A population of bacteria decreases by 5\% every hour. If the initial population is 5000, find the population after 3 hours.
🔍 Worked example — Exam-style
After a 12\% increase, a car's value is \15,600. Calculate the original value of the car.
⚠️ Common errors
🧠 Quick check 1
🧠 Quick check 2
🎯 Exam question
Key ideas — Simple and compound interest
amount = P (1 + r/100 )^n
🧑🏫 Teacher's explanation
Imagine you are lending a friend \$100. If they agree to pay you back \$5 every year, that is like simple interest. The amount they owe you grows by the same fixed amount every single time. It is a steady, straight line.
📖 Definitions
🔍 Worked example — Easy
Calculate the simple interest earned on \$5000 at a rate of 4% per annum for 3 years.
🔍 Worked example — Standard
A bank account starts with \$1200. It earns 5% compound interest per year. Calculate the total amount in the account after 4 years.
🔍 Worked example — Exam-style
A car's value depreciates by 12% each year. If the car is worth \$25,000 now, calculate its value after 3 years.
⚠️ Common errors
🧠 Quick check 1
🧠 Quick check 2
🎯 Exam question
Key ideas — Reverse percentages
When you know the amount after a change, divide by the multiplier to find the original. A price after a 20% discount is \$96: original = 96 ÷ 0.8 = \120. Never take 20% of \$96.
🧑🏫 Teacher's explanation
Imagine you are looking at a photo that has been zoomed in. You see the current size, but you want to know how big it was before the zoom happened. In maths, a percentage change is like a 'multiplier' that scales a number up or down. If something increases by 10\%, it becomes 110\% of its original size, which is a multiplier of 1.1. If it decreases by 10\%, it becomes 90\% of its original size, a multiplier of 0.9.
📖 Definitions
🔍 Worked example — Easy
A shirt is sold for \35 after a 30\% discount. Find the original price of the shirt.
🔍 Worked example — Standard
After a 15\% price increase, a laptop costs \690. Calculate the original price.
🔍 Worked example — Exam-style
A population of bacteria increases by 12\% every hour. After one hour, the population is 5600. Find the initial population.
⚠️ Common errors
🧠 Quick check 1
🧠 Quick check 2
🎯 Exam question
Key ideas — Exponential growth and decay
Repeated percentage change gives value = start × (multiplier)^n:
🧑🏫 Teacher's explanation
Imagine you are watching a snowball rolling down a hill. If the snowball picks up a fixed amount of snow every second, that is linear growth. But if the snowball picks up a percentage of its *current* size every second, the bigger it gets, the faster it grows. This is exponential growth.
📖 Definitions
🔍 Worked example — Easy
A population of bacteria starts at 500 and increases by 10\% every hour. Calculate the population after 4 hours.
🔍 Worked example — Standard
A machine depreciates by 15\% in value each year. If the machine is worth \12,000 now, find its value after 3 years.
🔍 Worked example — Exam-style
The value of a rare coin is modeled by V = 500 × (1.04)^n, where V is the value in dollars and n is the number of years since it was bought. Find the value of the coin after 12 years. Give your answer to the nearest dollar.
⚠️ Common errors
🧠 Quick check 1
🧠 Quick check 2
🎯 Exam question
Worked examples
A shop sells a jacket for \$138, making a 15% profit. Cost price = 138 ÷ 1.15 = \120.
🔍 Worked example — Easy
A shop sells a jacket for \$138, making a 15\% profit. Calculate the cost price of the jacket.
🔍 Worked example — Standard
A phone bought for \$450 is sold for \$315. Calculate the percentage loss.
🔍 Worked example — Exam-style
A population of 5000 grows by 8\% each year. After how many whole years does it first exceed 7000?
⚠️ Common errors
Common mistakes
Practice
Answers: (1) 64 × 1.35 = \86.40. (2) 180/2400 × 100 = 7.5\%. (3) 5000 × 1.04^3 = 5624.32; interest = \624.32. (4) 901 ÷ 1.06 = \850. (5) 12 000 × 0.85^4 = \6264.08.
All chapters in Number
- 1.1–1.2 Types of Number and Sets
- 1.3, 1.7, 1.18 Powers, Roots, Indices and Surds
- 1.4–1.6 Fractions, Decimals, Ordering and the Four Operations
- 1.8–1.10, 1.14 Standard Form, Estimation, Limits of Accuracy and Calculators
- 1.11, 1.12, 1.15, 1.16 Ratio, Rates, Time and Money
- 1.13, 1.17 Percentages and Exponential Growth and Decay