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Whenever a price is changed, you can find the percent of increase or the percent of decrease by using the following formula:

$$\frac{\text{percent of change}}{100}=\frac{\text{change in price}}{\text{original price}}$$

To find the change in price, you calculate the difference between the original price and the new price.

Is the "percent of change" the change in price represented as a percent of the original price?

Does the proportion:

"percent of change" is to $100$ as change in price is to original price

make sense? Also, don't we lose the percent symbol if the original price is $100?

Since then

$$\text{percent of change}=\text{change in price}$$

So does "percent of change" now just become a portion of the original price?

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closed as off-topic by Joshua Ulrich, Good Guy Mike, olaker Mar 9 '14 at 19:54

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  • "Basic financial questions are off-topic as they are assumed to be common knowledge for those studying or working in the field of quantitative finance." – Joshua Ulrich, Good Guy Mike, olaker
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1 Answer 1

price went from \$200 to \$202, this is "one percent change", because $\frac{\$2}{\$200}100=1$

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