1. What is the Percent Increase/Decrease Formula?

The compound growth formula calculates how a value changes over time with a consistent percentage increase or decrease. It's widely used in finance, economics, and population studies.

2. How Does the Calculator Work?

The calculator uses the compound growth formula:

Where:

• \( Old\ Value \) — Starting amount or quantity
• \( Rate \) — Percentage change per period (positive for increase, negative for decrease)
• \( Periods \) — Number of time periods (years, months, etc.)

Explanation: The formula accounts for compounding effects where each period's change is applied to the accumulated value from previous periods.

3. Applications of This Calculation

Details: This calculation is essential for investment growth projections, inflation adjustments, population growth models, and any scenario involving exponential change.

4. Using the Calculator

Tips: Enter the starting value, percentage change (use negative for decrease), and number of periods. The calculator shows the final value and a graph of growth over time.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between simple and compound growth?
A: Simple growth applies the percentage to the original amount each time, while compound growth applies it to the current amount (including previous growth).

Q2: How do I calculate annual growth rate from total growth?
A: Use the formula: \( Rate = 100 \times ((Final\ Value / Initial\ Value)^{1/Periods} - 1) \)

Q3: Can this be used for monthly calculations?
A: Yes, just ensure the rate matches the period (monthly rate for monthly periods, annual rate for annual periods).

Q4: What does negative growth look like on the graph?
A: The line will slope downward, showing the value decreasing over time.

Q5: How accurate are long-term projections?
A: Less reliable for long periods as real-world rates rarely stay constant. Useful for short-term projections or hypothetical scenarios.