ARITHMETIC

The review of arithmetic begins with integers, fractions, and decimals and progresses to the set of real
numbers. The basic arithmetic operations of addition, subtraction, multiplication, and division are
discussed, along with exponents and roots. The section ends with the concepts of ratio and percent.

1.1 Integers

The integers are the numbers 1, 2, 3, and so on, together with their negatives, -1, - 2, -3, . . . , and 0.
Thus, the set of integers is { . . . , -3, - 2, -1, 0, 1, 2, 3, . . . }.

The positive integers are greater than 0, the negative integers are less than 0, and 0 is neither positive nor
negative. When integers are added, subtracted, or multiplied, the result is always an integer; division of
integers is addressed below. The many elementary number facts for these operations, such as 7 + 8 = 15,
78 - 87 = -9, 7 - ( -18) = 25, and (7 ) (8) = 56, should be familiar to you; they are not reviewed here.
Here are some general facts regarding multiplication of integers.
• The product of two positive integers is a positive integer.
• The product of two negative integers is a positive integer.
• The product of a positive integer and a negative integer is a negative integer.

When integers are multiplied, each of the multiplied integers is called a factor or divisor of the resulting
product. For example, ( 2)(3)(10) = 60, so 2, 3, and 10 are factors of 60. The integers 4, 15, 5, and 12 are
also factors of 60, since ( 4)(15) = 60 and (5)(12) = 60. The positive factors of 60 are 1, 2, 3, 4, 5, 6, 10,
12, 15, 20, 30, and 60. The negatives of these integers are also factors of 60, since, for example,
( -2)( -30) = 60. There are no other factors of 60. We say that 60 is a multiple of each of its factors and
that 60 is divisible by each of its divisors. Here are some more examples of factors and multiples.
• The positive factors of 100 are 1, 2, 4, 5, 10, 20, 25, 50, and 100.
• 25 is a multiple of only six integers: 1, 5, 25, and their negatives.
• The list of positive multiples of 25 has no end: 25, 50, 75, 100, 125, 150, etc.; likewise, every
nonzero integer has infinitely many multiples.
• 1 is a factor of every integer; 1 is not a multiple of any integer except 1 and -1.
• 0 is a multiple of every integer; 0 is not a factor of any integer except 0.

The least common multiple of two nonzero integers a and b is the least positive integer that is a multiple
of both a and b. For example, the least common multiple of 30 and 75 is 150. This is because the positive
multiples of 30 are 30, 60, 90, 120, 150, 180, 210, 240, 270, 300, etc., and the positive multiples of 75 are
75, 150, 225, 300, 375, 450, etc. Thus, the common positive multiples of 30 and 75 are 150, 300, 450,
etc., and the least of these is 150.

The greatest common divisor (or greatest common factor) of two nonzero integers a and b is the
greatest positive integer that is a divisor of both a and b. For example, the greatest common divisor of 30
and 75 is 15. This is because the positive divisors of 30 are 1, 2, 3, 5, 6, 10, 15, and 30, and the positive
divisors of 75 are 1, 3, 5, 15, 25, and 75. Thus, the common positive divisors of 30 and 75 are 1, 3, 5, and
15, and the greatest of these is 15.

When an integer a is divided by an integer b, where b is a divisor of a, the result is always a divisor of a.
For example, when 60 is divided by 6 (one of its divisors), the result is 10, which is another divisor of 60.
If b is not a divisor of a, then the result can be viewed in three different ways. The result can be viewed as
a fraction or as a decimal, both of which are discussed later, or the result can be viewed as a quotient

Arithmetic -1-
with a remainder, where both are integers. Each view is useful, depending on the context. Fractions and
decimals are useful when the result must be viewed as a single number, while quotients with remainders
are useful for describing the result in terms of integers only.

Regarding quotients with remainders, consider two positive integers a and b for which b is not a divisor
of a; for example, the integers 19 and 7. When 19 is divided by 7, the result is greater than 2, since
(2)(7 ) < 19, but less than 3, since 19 < (3)(7) . Because 19 is 5 more than (2)(7) , we say that the result
of 19 divided by 7 is the quotient 2 with remainder 5, or simply “2 remainder 5.” In general, when a
positive integer a is divided by a positive integer b, you first find the greatest multiple of b that is less
than or equal to a. That multiple of b can be expressed as the product qb, where q is the quotient. Then the
remainder is equal to a minus that multiple of b, or r = a - qb, where r is the remainder. The remainder
is always greater than or equal to 0 and less than b.

Here are examples that illustrate a few different cases of division resulting in a quotient and remainder.
• 100 divided by 45 is 2 remainder 10, since the greatest multiple of 45 that’s less than or equal to
100 is ( 2)( 45) , or 90, which is 10 less than 100.
• 24 divided by 4 is 6 remainder 0, since the greatest multiple of 4 that’s less than or equal to 24 is 24
itself, which is 0 less than 24. In general, the remainder is 0 if and only if a is divisible by b.
• 6 divided by 24 is 0 remainder 6, since the greatest multiple of 24 that’s less than or equal to 6 is
(0)(24) , or 0, which is 6 less than 6.

Here are some other examples.

• 100 divided by 3 is 33 remainder 1, since 100 = (33)(3) + 1.
• 100 divided by 25 is 4 remainder 0, since 100 = ( 4)( 25) + 0.
• 80 divided by 100 is 0 remainder 80, since 80 = (0)(100) + 80.
• When you divide 100 by 2, the remainder is 0.
• When you divide 99 by 2, the remainder is 1.

If an integer is divisible by 2, it is called an even integer; otherwise it is an odd integer. Note that when a
positive odd integer is divided by 2, the remainder is always 1. The set of even integers is
{ . . . , - 6, - 4, - 2, 0, 2, 4, 6, . . . } , and the set of odd integers is { . . . , -5, -3, -1, 1, 3, 5, . . . }. There are
several useful facts regarding the sum and product of even and odd integers.
• The sum of two even integers is an even integer.
• The sum of two odd integers is an even integer.
• The sum of an even integer and an odd integer is an odd integer.
• The product of two even integers is an even integer.
• The product of two odd integers is an odd integer.
• The product of an even integer and an odd integer is an even integer.

A prime number is an integer greater than 1 that has only two positive divisors: 1 and itself. The first ten
prime numbers are 2, 3, 5, 7, 11, 13, 17, 19, 23, and 29. The integer 14 is not a prime number, since it has
four positive divisors: 1, 2, 7, and 14. The integer 1 is not a prime number, and the integer 2 is the only
prime number that is even.

Every integer greater than 1 either is a prime number or can be uniquely expressed as a product of factors
that are prime numbers, or prime divisors. Such an expression is called a prime factorization. Here are
several examples of prime factorizations.

Arithmetic -2-
 ( )
12 = ( 2)( 2)(3) = 22 (3)
14 = ( 2)(7 )
81 = (3)(3)(3)(3) = 34
( )
338 = ( 2)(13)(13) = ( 2) 132

( )( )
800 = ( 2)( 2)( 2)(2)(2)(5)(5) = 25 52
1,155 = (3)(5)(7 )(11)

An integer greater than 1 that is not a prime number is called a composite number. The first ten
composite numbers are 4, 6, 8, 9, 10, 12, 14, 15, 16, and 18.

1.2 Fractions

a
A fraction is a number of the form , where a and b are integers and b π 0. The integer a is called the
b
-7
numerator of the fraction, and b is called the denominator. For example, is a fraction in which -7
5
is the numerator and 5 is the denominator. Such numbers are also called rational numbers.

If both the numerator a and denominator b are multiplied by the same nonzero integer, the resulting
a
fraction will be equivalent to . For example,
b

-7 ( -7 )( 4) -28
= =
5 (5)(4) 20
-7 ( -7 )( -1) 7
= =
5 (5)( -1) -5

A fraction with a negative sign in either the numerator or denominator can be written with the negative
-7 7 7
sign in front of the fraction; for example, = =- .
5 -5 5

If both the numerator and denominator have a common factor, then the numerator and denominator can
be factored and reduced to an equivalent fraction. For example,

40 (8)(5) 5
= =
72 (8)(9) 9

To add two fractions with the same denominator, you add the numerators and keep the same denominator.
For example,

8 5 -8 + 5 -3 3
- + = = =-
11 11 11 11 11

To add two fractions with different denominators, first find a common denominator, which is a common
multiple of the two denominators. Then convert both fractions to equivalent fractions with the same
denominator. Finally, add the numerators and keep the common denominator. For example, to add the
1 2
fractions and - , use the common denominator 15:
3 5
Arithmetic -3-
 1 -2
3
+
5
=
1 5
3 5
+( )( ) ( )( )
-2 3
5 3
=
5
+
15 15
-6 5 + ( -6)
=
15
=-
1
15

The same method applies to subtraction of fractions.

To multiply two fractions, multiply the two numerators and multiply the two denominators. For example,

(107 )( -31) = (10(7)()(-3)1) = -2110 = - 1021

( 83 )( 73 ) = 569
To divide one fraction by another, first invert the second fraction—that is, find its reciprocal—then
multiply the first fraction by the inverted fraction. For example,

17 3
8
∏ =
4
17 4
8 3( )( ) ( )( ) ( )( )
=
4 17
8 3
=
1 17
2 3
=
17
6
3

7 10 7( )( )
10 = 3 13 = 39
70
13

3
An expression such as 4 is called a mixed number. It consists of an integer part and a fraction part; the
8
3 3
mixed number 4 means 4 + . To convert a mixed number to an ordinary fraction, convert the integer
8 8
part to an equivalent fraction and add it to the fraction part. For example,

4
3
8
3
= 4+ =
8
4 8
1 8 ( )( )
3 32 3 35
+ =
8 8
+ =
8 8

a
Note that numbers of the form , where either a or b is not an integer and b π 0, are fractional
b
p p
expressions that can be manipulated just like fractions. For example, the numbers and can be
2 3
added together as follows.

p p
+ =
2 3
p
2 ( )( 33 ) + ( p3 )( 22 ) = 36p + 26p = 56p
1
And the number 2 can be simplified as follows.
3
5
1
2 =
3 ( 12 ) ÊË 35 ˆ¯ = 3 52
5

Arithmetic -4-
1.3 Exponents and Roots

Exponents are used to denote the repeated multiplication of a number by itself; for example,
34 = (3)(3)(3)(3) = 81 and 53 = (5)(5)(5) = 125. In the expression 34 , 3 is called the base, 4 is called
the exponent, and we read the expression as “3 to the fourth power.” So 5 to the third power is 125.
When the exponent is 2, we call the process squaring. Thus, 6 squared is 36, 62 = (6)(6) = 36, and 7
squared is 49, 7 2 = (7 ) (7 ) = 49.

When negative numbers are raised to powers, the result may be positive or negative. For example,
( -3)2 = ( -3)( -3) = 9, while ( -3)5 = ( -3)( -3)( -3)( -3)( -3) = -243. A negative number raised to an
even power is always positive, and a negative number raised to an odd power is always negative. Note
that without the parentheses, the expression -32 means “the negative of ‘3 squared’ ”; that is, the
exponent is applied before the negative sign. So ( -3)2 = 9, but -32 = -9.

Exponents can also be negative or zero; such exponents are defined as follows.
• For all nonzero numbers a, a 0 = 1. The expression 00 is undefined.
1 1 1
( )
• For all nonzero numbers a, a -1 = , a -2 = 2 , a -3 = 3 , etc. Note that ( a ) a -1 = ( a )
a a a
1
a ()
= 1.

A square root of a nonnegative number n is a number r such that r 2 = n. For example, 4 is a square
root of 16 because 42 = 16. Another square root of 16 is - 4, since ( - 4)2 = 16. All positive numbers
have two square roots, one positive and one negative. The only square root of 0 is 0. The symbol n is
used to denote the nonnegative square root of the nonnegative number n. Therefore, 100 = 10,
- 100 = -10, and 0 = 0. Square roots of negative numbers are not defined in the real number system.

Here are some important rules regarding operations with square roots, where a > 0 and b > 0.

Rule Examples
( a) 2
=a ( 3) 2
=3 ( p )2 = p
a2 = a 4 =2 p2 = p
a b ⫽ ab 3 10 = 30 24 = 4 6 = 2 6
a a 5 5 1 18 18
= = = = = 9 =3
b b 15 15 3 2 2

A square root is a root of order 2. Higher-order roots of a positive number n are defined similarly. For
orders 3 and 4, the cube root 3 n and fourth root 4 n represent numbers such that when they are raised
to the powers 3 and 4, respectively, the result is n. These roots obey rules similar to those above (but with
the exponent 2 replaced by 3 or 4 in the first two rules). There are some notable differences between odd-
order roots and even-order roots (in the real number system):
• For odd-order roots, there is exactly one root for every number n, even when n is negative.
• For even-order roots, there are exactly two roots for every positive number n and no roots for any
negative number n.

For example, 8 has exactly one cube root, 3 8 = 2, but 8 has two fourth roots: 4 8 and - 4 8 ; and -8 has
exactly one cube root, 3 -8 = -2, but -8 has no fourth root, since it is negative.

Arithmetic -5-
1.4 Decimals

The decimal number system is based on representing numbers using powers of 10. The place value of
each digit corresponds to a power of 10. For example, the digits of the number 7,532.418 have the
following place values.

That is,
7,532.418 = 7(1,000) + 5(100) + 3(10) + 2(1) + 4 (101 ) + 1(1001 ) + 8(1,000
1
)
( ) ( ) ( ) ( ) ( ) (
= 7 103 + 5 102 + 3 101 + 2 100 + 4 10-1 + 1 10-2 + 8 10-3 ) ( )
If there are a finite number of digits to the right of the decimal point, converting a decimal to an
equivalent fraction with integers in the numerator and denominator is a straightforward process. Since
each place value is a power of 10, every decimal can be converted to an integer divided by a power of 10.
For example,

3 23
2.3 = 2 + =
10 10
17 9,000 + 17 9,017
90.17 = 90 + = =
100 100 100
612 153
0.612 = =
1,000 250

Conversely, every fraction with integers in the numerator and denominator can be converted to an
equivalent decimal by dividing the numerator by the denominator using long division (which is not in this
1
review). The decimal that results from the long division will either terminate, as in = 0.25 and
4
52 1 1
= 2.08, or the decimal will repeat without end, as in = 0.111. . . , = 0.0454545. . . , and
25 9 22
25
= 2.08333. . . . One way to indicate the repeating part of a decimal that repeats without end is to use a
12
bar over the digits that repeat. Here are some examples of fractions converted to decimals.

3
= 0.375
8
259 19
=6+ = 6.475
40 40
1
- = - 0.3
3
15
= 1.0714285
14

Arithmetic -6-
Every fraction with integers in the numerator and denominator is equivalent to a decimal that terminates
or repeats. That is, every rational number can be expressed as a terminating or repeating decimal. The
converse is also true; that is, every terminating or repeating decimal represents a rational number.

Not all decimals are terminating or repeating; for instance, the decimal that is equivalent to 2 is
1.41421356237. . . , and it can be shown that this decimal does not terminate or repeat. Another example
is 0.010110111011110111110. . . , which has groups of consecutive 1’s separated by a 0, where the
number of 1’s in each successive group increases by one. Since these two decimals do not terminate or
repeat, they are not rational numbers. Such numbers are called irrational numbers.

1.5 Real Numbers

The set of real numbers consists of all rational numbers and all irrational numbers. The real numbers
include all integers, fractions, and decimals. The set of real numbers can be represented by a number line
called the real number line.

Every real number corresponds to a point on the number line, and every point on the number line
corresponds to a real number. On the number line, all numbers to the left of 0 are negative and all
numbers to the right of 0 are positive. Only the number 0 is neither negative nor positive.

A real number x is less than a real number y if x is to the left of y on the number line, which is written
as x < y. A real number y is greater than x if y is to the right of x on the number line, which is written
as y > x. For example,
- 5 < -2
1
>0
2
1< 2 < 2

To say that a real number x is between 2 and 3 on the number line means that x > 2 and x < 3, which
can also be written as the double inequality 2 < x < 3. The set of all real numbers that are between 2 and
3 is called an interval, and the double inequality 2 < x < 3 is often used to represent that interval. Note
that the endpoints of the interval, 2 and 3, are not included in the interval. Sometimes one or both of the
endpoints are to be included in an interval. The following inequalities represent four types of intervals,
depending on whether the endpoints are included.

2 < x < 3
2 £ x < 3
2 < x £ 3
2 £ x £ 3

Arithmetic -7-
There are also four types of intervals with only one endpoint, each of which consists of all real numbers to
the right or to the left of the endpoint, perhaps including the endpoint. The following inequalities
represent these types of intervals.

x < 4
x £ 4
x > 4
x ≥ 4

The entire real number line is also considered to be an interval.

The distance between a number x and 0 on the number line is called the absolute value of x, written as
x . Therefore, 3 = 3 and -3 = 3 because each of the numbers 3 and -3 is a distance of 3 from 0.
Note that if x is positive, then x = x ; if x is negative, then x = - x ; and lastly, 0 = 0. It follows that
the absolute value of any nonzero number is positive. Here are some examples.

5 = 5
- 23 = - ( -23) = 23
-10.2 = 10.2

There are several general properties of real numbers that are used frequently. If a, b, and c are real
numbers, then
• a + b = b + a and ab = ba.
For example, 8 + 2 = 2 + 8 = 10 and ( -3)(17 ) = (17 )( -3) = -51.
• ( a + b ) + c = a + (b + c ) and ( ab ) c = a (bc ) .
For example, (7 + 3) + 8 = 7 + (3 + 8) = 18 and ( 7 2 ) 2 = 7 ( 2 2 ) = (7 )(2) = 14.
• a (b + c ) = ab + ac
For example, 5 (3 + 16) = (5)(3) + (5)(16) = 95.
• a + 0 = a, ( a )(0) = 0, and ( a )(1) = a.
• If ab = 0, then a = 0 or b = 0, or both.
For example, if -2b = 0, then b = 0.
-7 0
• Division by 0 is not defined; for example, 5 ∏ 0, , and are undefined.
0 0
• If both a and b are positive, then both a + b and ab are positive.
• If both a and b are negative, then a + b is negative and ab is positive.
• If a is positive and b is negative, then ab is negative.
• a + b £ a + b . This is known as the triangle inequality.
For example, if a = 5 and b = -2, then 5 + ( -2) = 5 - 2 = 3 = 3 and
5 + - 2 = 5 + 2 = 7. Therefore, 5 + ( -2) £ 5 + - 2 .
• a b = ab . For example, 5 - 2 = (5)( -2) = -10 = 10.
• If a > 1, then a 2 > a. If 0 < b < 1, then b 2 < b.

( ) = 251 < 15 .
2
1
For example, 52 = 25 > 5, but
5

Arithmetic -8-
1.6 Ratio

The ratio of one quantity to another is a way to express their relative sizes, often in the form of a fraction,
where the first quantity is the numerator and the second quantity is the denominator. Thus, if s and t are
s
positive quantities, then the ratio of s to t can be written as the fraction . The notation “s to t” or “ s : t ”
t
is also used to express this ratio. For example, if there are 2 apples and 3 oranges in a basket, we can say
2
that the ratio of the number of apples to the number of oranges is or that it is 2 to 3 or that it is 2 : 3.
3
Like fractions, ratios can be reduced to lowest terms. For example, if there are 8 apples and 12 oranges in
a basket, then the ratio of the numbers of apples to oranges is still 2 to 3. Similarly, the ratio 9 to 12 is
equivalent to the ratio 3 to 4.

If three or more positive quantities are being considered, say r, s, and t, then their relative sizes can also
be expressed as a ratio with the notation “r to s to t”. For example, if there are 5 apples, 30 pears, and 20
oranges in a basket, then the ratio of the numbers of apples to pears to oranges is 5 to 30 to 20. This ratio
can be reduced to 1 to 6 to 4 by dividing each number by the greatest common divisor of 5, 30, and 20,
which is 5.

9 3
A proportion is an equation relating two ratios; for example, = . To solve a problem involving
12 4
ratios, you can often write a proportion and solve it by cross multiplication.

Example 1.6.1: To find a number x so that the ratio of x to 49 is the same as the ratio of 3 to 21, you can
write

x 3
=
49 21

(3)(49)
Then cross multiply to get 21x = (3)(49) , and solve for x to get x = = 7.
21

1.7 Percent

The term percent means per hundred, or hundredths. Percents are ratios that are often used to represent
parts of a whole, where the whole is considered as having 100 parts.
1
• 1 percent means 1 part out of 100 parts, or .
100
32
• 32 percent means 32 parts out of 100 parts, or .
100
1
• 50 percent means 50 parts out of 100 parts, or .
2

Note that the part is the numerator of the ratio and the whole is the denominator. Percents are often
written with the % symbol; fractional and decimal equivalents are often used as well but without the %
symbol, as follows.

Arithmetic -9-
 1
1% = = 0.01
100
100
100% = =1
100
32
32% = = 0.32
100
50
50% = = 0.5
100
0.3
0.3% = = 0.003
100

Be careful not to confuse 0.01 with 0.01%. The percent symbol matters. For example, 0.01 = 1% but
0.01
0.01% = = 0.0001.
100

• To compute a percent, given the part and the whole, divide the part by the whole. The result will be
the decimal equivalent, so multiply the result by 100 to convert to percent.

Example 1.7.1: If the whole is 20 and the part is 13, you can find the percent as follows.

part 13
= = 0.65 = 65%
whole 20

Example 1.7.2: What percent of 150 is 12.9 ?

Solution: Here the whole is 150 and the part is 12.9.

part 12.9
= = 0.086 = 8.6%
whole 150

• To find the part that is a certain percent of a whole, you can either multiply the whole by the
decimal equivalent of the percent or set up a proportion to find the part.

Example 1.7.3: To find 30% of 350, multiply 350 by the decimal equivalent of 30%, or 0.3, as follows.

x = (350)(0.3) = 105

To use a proportion, you need to find the number of parts of 350 that yields the same ratio as 30 out of
100 parts. You want a number x that satisfies the proportion

part 30
=
whole 100
x 30
=
350 100

(30)(350)
Solving for x yields x = = 105, so 30% of 350 is 105.
100

• Given the percent and the part, you can calculate the whole. To do this you can either use the
decimal equivalent of the percent or you can set up a proportion and solve it.

Arithmetic - 10 -
Example 1.7.4: 15 is 60% of what number?

Solution: Use the decimal equivalent of 60%. Because 60% of some number z is 15, multiply z by the
decimal equivalent of 60%, or 0.6.

0.6 z = 15

Now solve for z by dividing both sides of the equation by 0.6 as follows.

15
z = = 25
0.6

Using a proportion, look for a number z such that

part 60
=
whole 100
15 60
=
z 100

(15)(100) 1,500
Hence, 60 z = (15)(100) , and therefore, z = = = 25. That is, 15 is 60% of 25.
60 60

Although the discussion about percent so far assumes a context of a part and a whole, it is not necessary
that the part be less than the whole. In general, the whole is called the base of the percent. When the
numerator of a percent is greater than the base, the percent is greater than 100%. For example, 15 is 300%
of 5, since

15 300
=
5 100

and 250% of 16 is ( 100

250
)(16) = (2.5)(16) = 40. Note that the decimal equivalent of 250% is 2.5.
It is also not necessary for the part to be related to the whole at all, as in the question, “a teacher’s salary
is what percent of a banker’s salary?”

When a quantity changes from an initial positive amount to another positive amount, for example, an
employee’s salary that is raised, you can compute the amount of change as a percent of the initial amount.
This is called percent change. If a quantity increases from 600 to 750, then the percent increase is found
by dividing the amount of increase, 150, by the base, 600, which is the initial number given:

amount of increase 750 - 600 150 25

= = = = 0.25 = 25%
base 600 600 100

We say the percent increase is 25%. Sometimes this computation is written as

( 750600- 600 )(100%) = (150

600 )
(100%) = 25%

Arithmetic - 11 -
If a quantity doubles in size, then the percent increase is 100%. For example, if a quantity changes from
150 to 300, then the percent increase is

change 300 - 150 150

= = = 100%
base 150 150

If a quantity decreases from 500 to 400, calculate the percent decrease as follows.

change 500 - 400 100 20

= = = = 0.20 = 20%
base 500 500 100

The quantity decreased by 20%.

When computing a percent increase, the base is the smaller number. When computing a percent decrease,
the base is the larger number. In either case, the base is the initial number, before the change.

Example 1.7.5: An investment in a mutual fund increased by 12% in a single day. If the value of the
investment before the increase was $1,300, what was the value after the increase?

Solution: The percent increase is 12%. Therefore, the value of the increase is 12% of $1,300, or, using
the decimal equivalent, the increase is (0.12)($1,300) = $156. Thus, the value of the investment after the
change is

$1,300 + $156 = $1,456

Because the final result is the sum of the initial investment—100% of $1,300—and the increase—12% of
$1,300—the final result is 100% + 12% = 112% of $1,300. Thus, another way to get the final result is to
multiply the value of the investment by the decimal equivalent of 112%, which is 1.12:

($1,300)(1.12) = $1,456

A quantity may have several successive percent changes. The base of each successive percent change is
the result of the preceding percent change.

Example 1.7.6: The monthly enrollment at a preschool decreased by 8% during one month and increased
by 6% during the next month. What was the cumulative percent change for the two months?

Solution: If E is the enrollment before the first month, then the enrollment as a result of the 8% decrease
can be found by multiplying the base E by the decimal equivalent of 100% - 8% = 92%, which is 0.92:

0.92 E

The enrollment as a result of the second percent change—the 6% increase—can be found by multiplying
the new base 0.92E by the decimal equivalent of 100% + 6% = 106%, which is 1.06:

(1.06)(0.92) E = 0.9752 E

The percent equivalent of 0.9752 is 97.52%, which is 2.48% less than 100%. Thus, the cumulative
percent change in the enrollment for the two months is a 2.48% decrease.

Arithmetic - 12 -