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How to Calculate Percentage Increase

In this question I'm going to talk to you about the percentage change in an investment I have from £1,230 to £1,430 pounds.

Step 1: Confirm it's percentage increase

The first thing we need to do is work out whether it’s a percentage increase or a percentage decrease. Now it’s quite obvious in this case, that because we’re going from £1,230 to £1,430 pounds, it’s a percentage increase. If you write a little plus on your piece of paper it means that in the heat of the moment you’re not going to forget and get the wrong answer.

Step 2: Calculate the difference

You need to work out what the change is so you need to minus the new number from the old number. So, take £1,430 and minus £1,230 and you get the answer of £200.

Step 3: Calculate percentage of original

We need to work out what percentage £200 is of the original. Take £200 and divide that by £1,230 and you’ll get the answer of 0.1626.

Step 4: Convert to percentage

Now we just need to change this into percentage which you do if you multiply this by 100. So, 0.16 multiplied by 100 gives you the answer of 16.26%. By rounding up, you get 16.3%. If you practice this over and over, you’re going to increase your speed and accuracy which is going to put you in that first quartile which is what employers are looking for.