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MathematicsGrade 7· U.S. National — Common Core & NGSS
Aligned to:Common Core State Standards (Math)

Solving Multistep Percent Problems

Students use proportional reasoning to solve real-world problems involving discounts, markups, taxes, tips, and percent change.

Solving Multistep Percent Problems

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Review Percent as a Rate per 100

A percent is a rate that compares a quantity with 100. The word percent means “per 100,” so 35% means 35 out of every 100. You can write a percent as a fraction or decimal: 35% = 35/100 = 0.35. To find a percent of a number, multiply the number by the percent written as a decimal. For example, 35% of 80 is 0.35 × 80 = 28. You can also reason with equivalent rates. If 10% of 80 is 8, then 30% is 24 and 5% is 4. Therefore, 35% is 24 + 4, or 28. Both methods show that the part is 28, the whole is 80, and the percent is 35%.

A percent bar shows 35% of a whole of 80 as a part of 28, with the decimal calculation beside it.
A percent bar shows 35% of a whole of 80 as a part of 28, with the decimal calculation beside it.Source: Illustrated for this lesson

Model Percent Problems with Proportions

A proportion shows that two ratios are equal. For a percent problem, compare the part to the whole and set it equal to the percent over 100: part/whole = percent/100. Keep corresponding quantities in the same positions. Suppose 18 students in a class of 24 brought lunch from home. To find the percent, write 18/24 = p/100. Cross multiply to get 24p = 1,800, and divide by 24: p = 75. Therefore, 75% of the students brought lunch. You can check by converting 18/24 to a decimal: 18 ÷ 24 = 0.75, which equals 75%. A proportion can also be used to find an unknown part or whole by replacing the missing quantity with a variable.

A proportion diagram connects 18 students out of 24 to an unknown percent out of 100 and shows the cross multiplication.
A proportion diagram connects 18 students out of 24 to an unknown percent out of 100 and shows the cross multiplication.Source: Illustrated for this lesson

Calculate Discounts and Markups

A discount decreases an original price, while a markup increases a cost. First calculate the percent amount, and then subtract or add it. A backpack originally costs $60 and is discounted 25%. The discount is 0.25 × $60 = $15. Subtract the discount from the original price: $60 − $15 = $45. A shortcut is to multiply by the percent that remains. After a 25% discount, 75% remains, so 0.75 × $60 = $45. For a markup, suppose a store buys an item for $40 and adds a 30% markup. The markup is 0.30 × $40 = $12, so the selling price is $52. Using a multiplier, 100% + 30% = 130%, and 1.30 × $40 also equals $52.

A split price diagram shows a $60 backpack reduced to $45 and a $40 store cost increased to a $52 selling price.
A split price diagram shows a $60 backpack reduced to $45 and a $40 store cost increased to a $52 selling price.Source: Illustrated for this lesson

Solve Tax and Tip Problems

Sales tax and tips are percentages added to an amount. Calculate each percentage using the correct base amount. Suppose a restaurant meal costs $48 before tax. The sales tax is 6.25%, and you leave a 20% tip based on the meal price before tax. The tax is 0.0625 × $48 = $3.00. The tip is 0.20 × $48 = $9.60. Add the meal price, tax, and tip: $48 + $3.00 + $9.60 = $60.60. Do not calculate the tip from the total after tax unless the problem specifically tells you to do so. Estimate to check your answer: 6.25% is a little more than 5%, and 20% is one fifth of $48, so a total near $61 is reasonable.

A restaurant receipt breaks a $48 meal into sales tax, tip, and a final total of $60.60.
A restaurant receipt breaks a $48 meal into sales tax, tip, and a final total of $60.60.Source: Illustrated for this lesson

Analyze Percent Increase and Decrease

Percent change compares the amount of change with the original value. Use percent change = change/original × 100%. If a town’s recycling total rises from 240 tons to 300 tons, the increase is 300 − 240 = 60 tons. Divide by the original amount: 60 ÷ 240 = 0.25, so the percent increase is 25%. If the total later falls from 300 tons to 240 tons, the decrease is still 60 tons, but the original value is now 300. Then 60 ÷ 300 = 0.20, so the percent decrease is 20%. A 25% increase followed by a 20% decrease returns to the starting value because the percentages use different original amounts. Always identify the original value before dividing.

Two recycling arrows show an increase from 240 to 300 tons and a decrease from 300 back to 240 tons.
Two recycling arrows show an increase from 240 to 300 tons and a decrease from 300 back to 240 tons.Source: Illustrated for this lesson

Complete an Exit Problem

Solve this multistep problem: A jacket has an original price of $80. It is discounted 30%, and then 5% sales tax is added to the sale price. First find the discount: 0.30 × $80 = $24. Subtract to find the sale price: $80 − $24 = $56. Next, calculate tax using the sale price, not the original price: 0.05 × $56 = $2.80. Add the tax to the sale price: $56 + $2.80 = $58.80. You can also use multipliers: $80 × 0.70 × 1.05 = $58.80. The order matters because the tax applies after the discount. As a final check, the total should be less than $80 because the 30% discount is much larger than the 5% tax.

A jacket price flow shows an $80 original price becoming a $56 sale price and then a $58.80 final price after tax.
A jacket price flow shows an $80 original price becoming a $56 sale price and then a $58.80 final price after tax.Source: Illustrated for this lesson