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Math Help - total change

  1. #1
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    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
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  2. #2
    Senior Member Stroodle's Avatar
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    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
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  3. #3
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    Quote Originally Posted by Stroodle View Post
    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
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