According to investopedia.com website, “Percentage change is a simple mathematical concept that represents the degree of change over time.” There are two values involved here, initial and final. The formula of percentage change can be written as :
For all practical purposes, we can divide the percentage calculations in 2 parts:
Percentage Change Forward:
Multiply with
Percentage Change Backward
Divide by
| Case | Initial | Final |
|---|---|---|
| Profit/Loss | Cost (CP) | Selling Price (SP) |
| Discount | Marked Price (MP) | Selling Price (SP) |
| Tax | Selling Price (SP) | Amount Paid |
| GDP Growth Rate | Previous year's GDP | Current year's GDP |
Check the first images for concept summary and concept application:
Concept Summary
Concept Application:
Happy Learning!!!
Kamlesh Chauhan
