Micro Concept: Successive Percentage Change

“The process of changing an initial value more than once is called successive change. When these changes are represented in percentage changes then it is called successive percentage change.”

A good moving from a producer to a customer change hands multiple times with each actor raising the cost by certain percentages is an example of “successive percentage change“. From school maths, the concept “Compound interest” is a special case of successive percentage change with the same percentage change every time.

Let’s understand the concept using this picture:

Example: {\color{Blue} Intial \rightarrow 10% increase \rightarrow 20% decrease\rightarrow 50% increase \rightarrow Final }

Here the relationship between the initial and final values is as follows:

{\color{Blue} Final=Initial \times (1+10%) \times (1-20%) \times (1+50%)}

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

We can use this concept directly find:

  1. Final Value (Initial Value and % changes given)
  2. Overall Percentage Change (% changes given)
  3. Initial Value (Final value and % changes given)

This concept is very useful in solving arithmetic and Data Interpretation questions.

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Happy Learning !!!

Nazish Hasan Kazmi

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