Growth/Decay Formula:
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The percentage growth/decay formula calculates how a value changes over time when it grows or decays at a constant percentage rate each period. This is commonly used in finance, population studies, and scientific modeling.
The calculator uses the compound growth formula:
Where:
Explanation: The formula shows exponential growth when the rate is positive, and exponential decay when the rate is negative.
Details: This calculation is essential for financial planning (investments, loans), population projections, radioactive decay, and any scenario involving compound changes.
Tips: Enter the starting value, growth/decay rate (use negative for decrease), and number of periods. The calculator will show the final value and a graph of the progression.
Q1: What's the difference between simple and compound growth?
A: Simple growth applies the percentage to the original amount each time. Compound growth applies it to the current amount, leading to exponential change.
Q2: How do I calculate annual growth from total growth?
A: Use the formula: \( Annual\ Rate = 100 \times ((Final/Initial)^{1/Periods} - 1) \)
Q3: What does negative growth rate mean?
A: A negative rate indicates decay or decrease over time, like depreciation or population decline.
Q4: Can I use this for monthly calculations?
A: Yes, just make sure your rate matches the period (monthly rate for monthly periods).
Q5: Why does the graph curve upward/downward?
A: The curve shows exponential change - the effect compounds over time, creating a non-linear progression.