To calculate the final value after an increase:
\[ FV = IV \times \left(1 + \frac{IP}{100}\right) \]
Where:
Value increase refers to the rise in the monetary worth of an item or amount due to various factors such as inflation, market demand, or improvements. It is often expressed as a percentage of the initial value. Understanding value increase is essential for financial planning, investment analysis, and pricing strategies.
Let's assume the following values:
Using the formula:
Step 1: Calculate the increase factor:
\[ 1 + \frac{IP}{100} = 1 + \frac{10}{100} = 1.10 \]
Step 2: Multiply the initial value by the increase factor:
\[ FV = 1000 \times 1.10 = 1100 \]
The final value is $1100.
Let's assume the following values:
Using the formula:
Step 1: Calculate the increase factor:
\[ 1 + \frac{IP}{100} = 1 + \frac{20}{100} = 1.20 \]
Step 2: Multiply the initial value by the increase factor:
\[ FV = 500 \times 1.20 = 600 \]
The final value is $600.