The formula to calculate percent growth is:
\[ \text{PG} = \left(\frac{\text{FV} - \text{IV}}{\text{IV}}\right) \times 100 \]
To determine the percent growth per period, divide the result by the total number of periods:
\[ \text{PG per period} = \frac{\text{PG}}{\text{Number of Periods}} \]
Where:
Percent growth is a measure that indicates the relative increase or decrease in a quantity over a specific period. It is computed by comparing the change in the quantity to its initial value and expressing it as a percentage. This metric offers valuable insights into the rate of change and expansion of various phenomena, making it a vital tool in numerous fields.
Percent growth provides a standardized way to assess the development of a variable over time. By expressing changes as a percentage, it enables easy comparison across different data sets, industries, or regions. In finance and economics, percent growth is essential for measuring economic performance. It helps determine the pace at which an economy expands or contracts, enabling policymakers to make informed decisions. Investors and financial analysts also rely on percent growth to assess the profitability and potential of investment opportunities.
In science, percent growth is utilized to monitor the progress of experiments, the growth of organisms, and the development of diseases. It serves as a benchmark for evaluating the effectiveness of treatments, the spread of infections, and the success of interventions.
Let's assume the following:
Step 1: Calculate the total percent growth:
\[ \text{PG} = \left(\frac{150 - 100}{100}\right) \times 100 = 50\% \]
Step 2: Calculate the percent growth per period:
\[ \text{PG per period} = \frac{50\%}{5} = 10\% \]
Therefore, the total percent growth is 50%, and the percent growth per period is 10%.
