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Worked solution
Write down the original price
The overall percentage change is measured against this £80.
August: find the multiplier
A 40% rise means multiplying by 1.4.
August: work out the price
The August price is £112.
October: find the multiplier
A 30% fall means multiplying by 0.7.
October: apply it to the AUGUST price
The 30% comes off £112 (that is £33.60), not off the original £80. The October price is £78.40.
January: find the multiplier
A further 25% fall means multiplying by 0.75.
January: apply it to the OCTOBER price
The January price is £58.80.
Multiply the three multipliers together
Successive percentage changes combine by multiplying their multipliers, never by adding the percentages.
Work out the product in stages
The single equivalent multiplier is 0.735.
Check the single multiplier against the price
The single multiplier gives the same January price. ✓
Compare the multiplier with 1
The multiplier is below 1, so the room is cheaper in January than it was originally.
Turn the multiplier into a percentage change
The overall change is a 26.5% decrease.
Confirm from the prices
The price has fallen by £21.20, and £21.20 out of the original £80 is 26.5%. ✓
Watch the common error
Adding the percentages gives a fall, which is badly wrong. Notice too that then is not : , already a fall.
State the overall percentage change
The January price is 26.5% below the original £80.