# Micro Concept: Percentage Change

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 :

${\color{Blue}&space;Pecentage&space;Change=\frac{Final-Initial}{Initial}\displaystyle&space;\times&space;100}$

For all practical purposes, we can divide the percentage calculations in 2 parts:

Percentage Change Forward:

${\color{Blue}&space;Initial&space;\rightarrow&space;Final&space;}$

Multiply with ${\color{Blue}&space;(1+&space;%&space;change)}$

Percentage Change Backward

${\color{Blue}&space;Final&space;\rightarrow&space;Initial}$

Divide by ${\color{Blue}&space;(1+&space;%&space;change)}$

CaseInitialFinal
Profit/LossCost (CP)Selling Price (SP)
DiscountMarked Price (MP)Selling Price (SP)
TaxSelling Price (SP)Amount Paid
GDP Growth RatePrevious year's GDPCurrent year's GDP

Check the first images for concept summary and concept application:

Concept Summary

Concept Application:

Happy Learning!!!

Kamlesh Chauhan

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