# Thread: total change

1. ## total change

hello

when an amount is increased each year by 5% and decreased by 4%, is it safe to say that this amount will increase 1% each year?

thanks

2. Only if the 4% decrease is off the original amount; not off the new amount that was increased by 5%

e.g. increasing $100$ by $5\%$ gives $105$ if you then decrease this amount by $4\%$ you get $100.8$, whereas increasing $100$ by $1\%=101$

3. Originally Posted by Stroodle
Only if the 4% decrease is off the original amount; not off the new amount that was increased by 5%

e.g. increasing $100$ by $5\%$ gives $105$ if you then decrease this amount by $4\%$ you get $100.8$, whereas increasing $100$ by $1\%=101$
yes, the changes (both increase and decrease) will be calculated on the same original amount each year

so, the next year, there will be an increase of 101 by 5% and a decrease of 101 by 4% at the same time (increase of 5.05 and decrease of 4.04, which means increase of 1.01, which means 1% increase)

and so on
so it's safe to say so
thanks

,

,

,

### total change excel

Click on a term to search for related topics.