In this article, we will learn about successive percentage change, it deals with two or more percentage changes in a quantity consecutively.
Why this isn’t the simple addition of two percentage changes?
Successive Percentage Change: If there are percentage changes of a% and b% in a quantity consecutively, then total equivalent percentage change will be equal to the `(a + b + \frac { ab }{ 100 } )%`.
Example1:
There is two outlet, one is offering a discount of 50%+ 50% and other is offering a discount of 60% + 40%. At which outlet, one must visit so that she gets more discount?
Solution: Case1: 50%+ 50%
Total discount = -50 + -50 + `\frac {-50\times -50 }{ 100 } ` = -100 +25 =-75% ⇒ 75% discount
Solution: Case1: 50%+ 50%
Total discount = -50 + -50 + `\frac {-50\times -50 }{ 100 } ` = -100 +25 =-75% ⇒ 75% discount