AMC 10 · 2009 · #7

Grade 7 rate-ratio
percentagefraction-multiplicationlinear-equations-one-var work-backwards ↑ Prerequisites: percentage
📏 Medium solution 💡 2 insights
Problem
A price rises and falls by given percentages over three months, then falls by an unknown percentage. It ends back where it started. Find that unknown percentage.

Pick an answer.

(A)
12
(B)
17
(C)
20
(D)
25
(E)
35
How to solve
Strategy Work Backwards

The end price is pinned to the start price, and April's drop is the only unknown. So compute the price through March forward, then work backwards from the fixed end value to find the drop April must have made. Picking a convenient start value of 100 turns every percent into an easy multiplication.

1STEP 1

Pick a starting price of 100

A convenient starting price makes every percent easy.

P₀ = 100
2STEP 2

Apply January and February

The first two months land it below the start.

100 × 1.20 = 120, 120 × 0.80 = 96
3STEP 3

Apply March

The third month pushes it back above.

96 × 1.25 = 120
4STEP 4

Work backwards to find April's drop

The final drop is measured against that raised price.

x = (120 - 100)/120 × 100 = 20/120 × 100 = 16.6
5STEP 5

Round to the nearest integer

Rounding gives 17, choice (E).

16.6 ≈ 17
Answer
17
Check forward: 120 dropped by 17% is 120 - 0.17 * 120 = 120 - 20.4 = 99.6, very close to the target 100, confirming x is near 17 (choice B). The tempting wrong answer is 20 (choice C), which comes from measuring the 20-dollar drop against the original 100 instead of against April's actual starting price of 120.
💡Key takeaway

A percent change always works on the current price, so undoing a rise needs a smaller percent than the rise itself.

  • Pick a starting price of 100
  • Apply January and February
  • Apply March
  • Work backwards to find April's drop
  • Round to the nearest integer