By the end of this section you should be able to: ● calculate percentage increase or decrease
It is important to understand the diff erence between a percentage increase and a percentage decrease. Although the percentage might be the same, it is the actual amount of money or other items which needs to be considered.
Percentage increase or decrease = change in value
____________ original value × 100
Change in value is the diff erence between the original value and the fi nal value.
A decrease in price or value of goods can also be known as depreciation. Discuss and discover
Anita has a job in which she earns €100 per week. Her employer is very pleased with her work and gives her a 50% pay raise. A while later, the employer has to reduce everyone’s pay and tells Anita he will have to reduce her wage by 50%. Anita thinks this is fi ne, and she will still earn €100 a week, as a 50% increase is the same as a 50% decrease. Is she correct?
What have you discovered about a percentage increases and decreases? Worked example
A farmer bought a new tractor for €75 000, and seven years later he sold it for €30 000. What was the percentage decrease on the value of the tractor?
Solution
A decrease in value of an item can also be called a depreciation.