# Thread: Determining Percentage Change of annual income

1. ## Determining Percentage Change of annual income

The question is: Determine the overall percent change of the total annual income for all three income groups.

I'm a little confused here. Am I giving the percent change of (for example):
%change of Lowest 20% earners from 1997 to 2006? .. Would I divide the 1997 income by the 2006 income?

This is the data given:

 Year Lowest 20% Of Earners Highest 20% Of Earners Middle 20% Of Earners 1977 12000 122500 54200 1978 11800 126400 54000 1979 13100 121100 54200 1980 13700 123200 55700 1981 14600 123200 54700 1982 14300 122300 51600 1983 12800 127600 50100 1984 13900 126300 51700 1985 14800 130700 53200 1986 15100 134300 54900 1987 15800 137000 56000 1988 15700 142800 57300 1989 16800 147800 58200 1990 15500 143100 55900 1991 14300 139100 51600 1992 13900 137400 52400 1993 14100 136700 49700 1994 14100 136300 50700 1995 14300 139900 50500 1996 13000 141900 49900 1997 13200 146500 49800 1998 13600 153900 52000 1999 13500 162300 53900 2000 14300 169600 55300 2001 14700 169400 55800 2002 14700 167800 55600 2003 14800 166700 55700 2004 14200 170600 55700 2005 14300 168500 56500 2006 14700 168000 56900

2. ## Re: Determining Percentage Change of annual income

To calculate the "percent change" you subtract the original value from the final value, then divide by the original value and convert to a percentage, For example: from your data in 1977 the lowest 20% had a median income of $12000, which grew to$14,600 in 1996, so the percent change is:

$\frac {14600-12000}{12000} = \frac {2600}{12000} = 0.2167 = 21.67\%$ increase.