Welcome! Today we'll learn how to calculate percentage increase. Percentage increase shows how much a value has grown compared to its original amount. The formula is: percentage increase equals new value minus original value, divided by original value, then multiplied by one hundred percent. Let's break this down into three simple steps.
Let's start with step one: finding the increase. To find the increase, we subtract the original value from the new value. In our example, if the original value is fifty dollars and the new value is seventy-five dollars, then the increase equals seventy-five minus fifty, which equals twenty-five dollars.
Now for step two: divide the increase by the original value. This gives us a ratio that shows how much the value has grown relative to its starting point. In our example, we divide twenty-five dollars by fifty dollars, which equals zero point five. This ratio tells us the value increased by half of its original amount.
Finally, step three: convert the ratio to a percentage by multiplying by one hundred. In our example, we multiply zero point five by one hundred, which gives us fifty percent. This means the value increased by fifty percent from its original amount. So our final answer is a fifty percent increase.
To summarize what we've learned: Percentage increase measures how much a value has grown relative to its original amount. The formula is new value minus original value, divided by original value, then multiplied by one hundred percent. Remember the three simple steps: find the increase, divide by the original value, and multiply by one hundred. This calculation is useful for comparing changes in prices, salaries, and investments.