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Successive Percentage Change — The Fraction Chain Method

Handle multiple percentage changes correctly using fraction multiplication instead of the wrong way of simply adding percentages

Successive Percentage Change — The Fraction Chain Method

When a value changes by one percentage and then by another, you cannot simply add the percentages. The base changes after each step. This lesson teaches the fraction chain method — the fastest way to handle successive changes.

Step-by-step realistic growth scene showing that each percentage change applies to a new base value
Each stage starts from a new base, which is why successive changes must be chained instead of simply added.

Why You Can't Simply Add Percentages

Consider: A value increases by 10% in 2012, then by 20% in 2013.

Wrong: 10% + 20% = 30% total increase ✗

Right:

  • Start: 1000
  • After +10%: 1000 × 11/10 = 1100
  • After +20%: 1100 × 6/5 = 1320
  • Actual change = (1320 − 1000)/1000 × 100 = 32% (not 30%)

Why the difference? The 20% increase is applied to 1100 (not 1000), so you get an extra 20% of the first increase.


The Fraction Chain Method

Convert each percentage change to a fraction multiplier and multiply them all together in a chain.

Steps:

  1. Convert each percentage to a fraction (use the table from Lesson 2)
  2. For increase: multiplier = 1 + fraction = (d+n)/d
  3. For decrease: multiplier = 1 − fraction = (d−n)/d
  4. Multiply all multipliers together
  5. Apply to the initial value

Two Successive Changes

Example 1: Price increases by 9.09% then by 25%. Overall change?

Change Fraction Multiplier
+9.09% 1/11 12/11
+25% 1/4 5/4

Chain: I × 12/11 × 5/4 = I × 15/11

Overall ratio I : F = 11 : 15. Change = 4/11 × 100 = 36.36% increase

Example 2: Mobile price Rs. 8,640. Increased by 12.50% then by 20%.

Change Fraction Multiplier
+12.5% 1/8 9/8
+20% 1/5 6/5

F = 8640 × 9/8 × 6/5 = 8640 × 54/40 = 11,664

Example 3: Share value Rs. 6,300. Reduced by 16.67% then by 14.29%.

Change Fraction Multiplier
−16.67% 1/6 5/6
−14.29% 1/7 6/7

F = 6300 × 5/6 × 6/7 = 6300 × 5/7 = 4,500

Notice how 6 cancels out — this simplification is the power of the fraction chain!

Example 4: 2,700 coins increase by 33.33%, then decrease by 11.11%.

Change Fraction Multiplier
+33.33% 1/3 4/3
−11.11% 1/9 8/9

F = 2700 × 4/3 × 8/9 = 2700 × 32/27 = 3,200


Three Successive Changes

Example 5: 23,125 increased by 14.29%, 16.67%, and 20%.

Change Fraction Multiplier
+14.29% 1/7 8/7
+16.67% 1/6 7/6
+20% 1/5 6/5

F = 23,125 × 8/7 × 7/6 × 6/5

Look at the cancellations: 7 cancels, 6 cancels!

F = 23,125 × 8/5 = 23,125 × 8/5 = 37,000

Example 6: Salary Rs. 17,920. Increased by 12.50%, 11.11%, and 25%.

Change Multiplier
+12.5% 9/8
+11.11% 10/9
+25% 5/4

F = 17,920 × 9/8 × 10/9 × 5/4

Cancellations: 9 cancels!

F = 17,920 × 10/8 × 5/4 = 17,920 × 50/32 = 28,000

Example 7: 37,800 decreased by 33.33%, 8.33%, and 9.09%.

Change Multiplier
−33.33% 2/3
−8.33% 11/12
−9.09% 10/11

F = 37,800 × 2/3 × 11/12 × 10/11

Cancellations: 11 cancels!

F = 37,800 × 2/3 × 10/12 = 37,800 × 20/36 = 21,000

Example 8: Factory output 46,800. Decreased by 37.50%, 7.69%, and 5.56%.

Change Multiplier
−37.5% 5/8
−7.69% 12/13
−5.56% 17/18

F = 46,800 × 5/8 × 12/13 × 17/18 = 25,500


Finding Original from Final After Successive Changes

Reverse the chain — multiply by the inverse of each multiplier.

Example 9: After −22.22% and +10%, value becomes Rs. 16,170. Find original.

Change Multiplier Inverse
−22.22% 7/9 9/7
+10% 11/10 10/11

Original = 16,170 × 10/11 × 9/7 = 18,900

Example 10: After −55.56% and +18.18%, value becomes Rs. 13,000. Find original.

Change Multiplier Inverse
−55.56% (= 5/9) 4/9 9/4
+18.18% (= 2/11) 13/11 11/13

Original = 13,000 × 11/13 × 9/4 = 24,750

Example 11: After +87.50% and −28%, final = Rs. 12,960. Find original.

Change Multiplier Inverse
+87.5% (= 7/8) 15/8 8/15
−28% (= 7/25) 18/25 25/18

Original = 12,960 × 25/18 × 8/15 = 9,600


The Key Insight: Cancellations

The fraction chain method is powerful because fractions cancel beautifully. When one change has a numerator that matches another's denominator, they simplify instantly.

This is especially true for percentages like:

  • 14.28% (1/7) and 16.67% (1/6) → multipliers 8/7 and 7/6 → 7s cancel
  • 11.11% (1/9) and 12.5% (1/8) → multipliers 10/9 and 9/8 → 9s cancel
  • 33.33% (1/3) and 25% (1/4) → multipliers 4/3 and 5/4 → could simplify

Exam strategy: Always convert to fractions first. Look for cancellations before multiplying. This can turn a complex 3-step calculation into a single simple multiplication.


Exam Speed Tricks for Successive Changes

Instant Formulas (no calculation needed)

Question Pattern Instant Answer
+x% then −x% (same %) Net loss = x²/100 % (always a loss). E.g., +20% then −20% = −4%
+10% then +10% Net = +21% (not 20%)
+10% three times Net = +33.1%
−10% then −10% Net = −19% (not −20%)
Price ↑ x%, consumption ↓ to keep expenditure same Consumption must decrease by x/(100+x) × 100 %
Price ↑ 25%, keep expenditure same Consumption ↓ by 25/125 × 100 = 20% (use fraction: 1/4 up → 1/5 down)

The "Fraction Shortcut" for Expenditure-Constant Problems

If price rises by 1/n, reduce consumption by 1/(n+1) to keep spending same.

Price ↑ by = fraction Consumption ↓ by = fraction
10% 1/10 9.09% 1/11
20% 1/5 16.67% 1/6
25% 1/4 20% 1/5
33.33% 1/3 25% 1/4
50% 1/2 33.33% 1/3

This table alone can solve 80% of price-consumption questions in under 10 seconds.

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