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How To Factor Percentage Increase

Percentage Increase Formula:

\[ \text{New Value} = \text{Old Value} \times (1 + \frac{\text{Rate}}{100}) \]

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1. What is Percentage Increase?

Percentage increase measures how much a quantity has grown relative to its original value, expressed as a percentage. It's commonly used in finance, economics, statistics, and everyday calculations.

2. How Does the Calculator Work?

The calculator uses the percentage increase formula:

\[ \text{New Value} = \text{Old Value} \times (1 + \frac{\text{Rate}}{100}) \]

Where:

Explanation: The formula factors the percentage increase by converting the rate to a decimal (dividing by 100) and adding 1 to represent the original value plus the increase.

3. Practical Applications

Details: Percentage increase calculations are used in:

4. Using the Calculator

Tips:

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between percentage increase and absolute increase?
A: Absolute increase is the simple difference (New - Old), while percentage increase shows the change relative to the original value.

Q2: How do I calculate percentage increase manually?
A: First convert percentage to decimal (divide by 100), multiply by original value, then add to original value.

Q3: Can I use this for compound percentage increases?
A: No, this calculates a single percentage increase. For compound increases, you'd need to apply the formula multiple times.

Q4: Why does 100% increase double the value?
A: Because 100% of the original value added to itself equals 2 times the original (100% = 1.0 in decimal form).

Q5: How is this different from percentage of a total?
A: Percentage increase compares change to original value, while percentage of total shows a part's relation to a whole.

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