Question

The price of a washing machine was decreased by 20% to £640.

What was the price before the decrease?

Answer 1

£800

Explanation:

Use the percentage formula: NV = m x OV

NV is New Value;

m is Multiplier;

and OV is Old Value.

£640 in the New value, so now we have to convert 20% to a multiplier and find out the Old value.

Make OV the subject of the formula: OV = NV / m

So 20% decrease would mean: 100 - 20 = 80 * 100 = 0.80

Divide 640 (NV) by 0.80 (m) and it will give you:

£800

And it would make sense that the OV is higher, and it matches the statement -> as the NV is the decrease.