How to calculate percentage decrease formula?
To calculate the percentage decrease, you can use the following formula:
Percentage Decrease = [(Original Value - New Value) / Original Value] × 100%
Here's a step-by-step explanation of the formula and an example:
Original Value: This is the initial value or the value before the decrease occurred.
New Value: This is the value after the decrease has taken place.
Subtract New Value from Original Value: Subtract the New Value from the Original Value. This calculation gives you the amount by which the value has decreased.
Divide by Original Value: Divide the decrease by the Original Value to get the relative decrease as a fraction of the original amount.
Multiply by 100%: To express the decrease as a percentage, multiply the fraction by 100%.
Example:Suppose you have an item that originally costs $200, but its price has decreased to $150. To calculate the percentage decrease:
Percentage Decrease = [($200 - $150) / $200] × 100%Percentage Decrease = ($50 / $200) × 100%Percentage Decrease = 0.25 × 100%Percentage Decrease = 25%
In this example, the item has decreased in price by 25%. So, there has been a 25% decrease from the original value of $200 to the new value of $150.
Calculating Percentage Decrease: Step-by-Step
To calculate percentage decrease, follow these steps:
- Find the difference between the original value and the new value.
- Divide the difference by the original value.
- Multiply the result by 100 to express it as a percentage.
Formula for Percentage Decrease and Its Components
The formula for percentage decrease is as follows:
Percentage decrease = (Original value - New value) / Original value * 100%
The components of the formula are:
- Original value: The initial value before the decrease.
- New value: The final value after the decrease.
- Percentage decrease: The decrease expressed as a percentage.
Solving for Percentage Decrease with Practical Examples
Here are some practical examples of how to solve for percentage decrease:
Example 1:
The price of a product was reduced from $100 to $80. What is the percentage decrease in the price?
Percentage decrease = ($100 - $80) / $100 * 100% = 20%
Therefore, the price of the product decreased by 20%.
Example 2:
A student scored 90% on their first test and 80% on their second test. What is the percentage decrease in their score?
Percentage decrease = (90% - 80%) / 90% * 100% = 11.11%
Therefore, the student's score decreased by 11.11%.
Verifying Accuracy in Percentage Decrease Calculations
There are a few ways to verify the accuracy of your percentage decrease calculations:
- Check your work carefully. Make sure that you have used the correct formula and that your calculations are accurate.
- Use a calculator or spreadsheet to perform the calculations. This can help to reduce the risk of errors.
- Ask someone else to check your work for you.
Using Percentage Decrease in Business and Personal Finance
Percentage decrease is a useful concept in business and personal finance. It can be used to calculate things like:
- Discounts on products and services
- Inflation rates
- Investment losses
- Weight loss
- Energy savings
Here are some examples of how percentage decrease is used in business and personal finance:
- A business may offer a 20% discount on its products to attract new customers.
- An investor may lose 10% of their investment due to a market downturn.
- A person may lose 5% of their body weight through diet and exercise.
- A homeowner may reduce their energy consumption by 15% by making changes to their home and lifestyle.
By understanding how to calculate percentage decrease, you can make better decisions about your finances and your life.
