Thursday, June 23, 2016

Difference between the percentage point change and percentage change

Percentage change

Percentage point change is the simple arithmetic change in percentage from one period to another keeping all the other things same.

For example:
A bank was paying 5% rate of interest on saving accounts and now it is paying 6% rate of interest on saving, then the percentage point change is 
                                       
                                                 6% -5% = 1%

Percentage change

Percentage change is the percent change in  value of the quantity. 
For example:
considering the above example of rate of change of the interest rate on savings, from the 5 to 6 percentage.

the percentage change is          {(6-5)/5 }x 100 = {1/5}100 = 20 %

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