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} Pecentage Change=\frac{Final-Initial}{Initial}\displaystyle \times 100}

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

Percentage Change Forward:

{\color{Blue} Initial \rightarrow Final }

Multiply with {\color{Blue} (1+ % change)}

Percentage Change Backward

{\color{Blue} Final \rightarrow Initial}

Divide by {\color{Blue} (1+ % change)}


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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