Grade 7 Math Puzzle 4: Percents multiply, not add

A free grade 7 math puzzle that teaches Percents multiply, not add. Try it first — the hint and the full solution open when you are ready.

Problem 4 · Percents multiply, not add · 4 points

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A shirt's price is raised by 20%, and later the new price is reduced by 20%. Compared to the original price, the final price is:

10% lower
the same
2% lower
4% lower
4% higher

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Try it with a $100 shirt.

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Answer: D — 4% lower

Start at $100 → up 20% → $120 → down 20% of $120 → $96: 4% below the original. The −20% acts on a BIGGER base than the +20% did, so they don't cancel: 1.2 × 0.8 = 0.96. Percent changes compose by multiplication — a fact the SAT loves to test.

Grade 7 puzzle 4: Percents multiply, not add

Problem 4 · Percents multiply, not add · 4 points