How To Calculate Percentage Increase

Hi, my name is Charles and I am one of the math teachers from the Maxim Workshop. I am just going to now teach you how to do some math. In this video I am going to talk about how to calculate percentage increase.

Now, percentage increase is what you might find when you've got say something like interest or when say you have a certain amount of tax applied to a certain amount of money that you have within the bank or somewhere like it. So, if we look at percentage increase of a particular variable, we'll select our variable and we'll say, a car. Okay.

So, in fact… no, we'll say a house because we would want to look at a case where they are going up. So, imagine if we have a house and it's valued at say a 100,000 pounds. Okay? So, what we would want to do now is to say if after a year, we have, say a five percent increase in this value, what would be the price after the year, of this house? So, what we would first of all do is find out one percent of this house.

Okay? So, we take the value and we divide it by a 100. Now when we look at the zeros here all we have to do is scrub off the zeros there, or, jump to the left of the intended decimal and we've recorded a value of a thousand pounds. Okay, so we've calculated what one percent is equivalent to.

So one percent increase, so if now we want to look at what five percent relates to, all we would need to do is multiply this by five. Okay, and obviously that relates to five thousand. Now, if we add this to this, that gives us our total for the five percent increase over a year.

And this is obviously the price that you would find the house after a year, so, that's how to calculate percentage increase.