Applying Maths to solve problems in the real world…

Service cost increase (intermediate)

Difficulty: Rating:

GCSE Marks:

GCSE Text: Two competing garages are advertising their prices. Greg’s is a low cost garage with no frills, whereas Fred’s Luxury Garage has fancy seating, free refreshments and a more convenient location. Fred has decided to base his prices on Greg’s, to show customers that the additional cost is quite small. Below are the signs displayed outside the garages:

a) How much does Fred charge for a minor service?

b) How much does Fred charge for a minor service?

Suggestions:
A typical percentage increase/decrease question that could appear on a GCSE Foundation paper. Students would needs to be able to solve these without a calculator. Common mistakes are either in finding the right percentage, or forgetting to add it on to get the final price. Usually students take between 6 and 10 minutes to answer this question. As always with a high marks question, even if the answer is incorrect, marks would be awarded for:

Correct calculation of 5% and/or 12% of Greg’s prices

Extension Ideas: Teachers could extend the learning by considering:

Fred is considering increasing his minor service premium to 10% above Greg’s. How much extra would this add to the price of Fred’s minor service?

Simon’s Garage wants to be priced in between these two garages. Simon advertises that his minor services will cost 5% less than Fred’s minor service price, and that his major service will cost 12% less than Fred’s major service price. Explain why these are aren’t the same values as Greg’s prices.