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Here you will learn about the calculation of percentage change. You might have heard that the prices of housing has risen by %, but what does it actually mean when people say that something has risen or fallen by a certain percentage?
This type of increase or decrease is called a percentage change. The answer to the question asked above is then: The price for housing at two different times are compared, and the change in price is converted to a percentage relative to the original price. This is what you will learn here.
You want to compare old value to new value and find the percentage change. Have a look at the formula written below.
Formula
If you get a positive number, something has grown in value.
If you get a negative number, something has declined in value.
Example 1
You bought a Playstation for . You decided to sell it two years later. You sold it for . What was the percentage change?
The percentage change is:
This means that the change in value was . You got a negative percentage, meaning that the Playstation declined in value. It has fallen by in value.
Example 2
You deposit to the bank. A year later you find that this has grown to . What is the percentage change?
The percentage change is:
The percentage change is %. Since you found a positive number, the money you deposited has grown in value by %.
Example 3
Four years ago a house cost , now the same house costs . How many percent has the house grown in value?
You have to calculate the percentage change.
In four years the value of the house has grown by %.