Question

what is the correct formula to compute the percentage increase?

choose an answer

option 1:
\\(\frac{\text{new value} - \text{original value}}{\text{original value}} \times 100\\%\\)

option 2:
\\(\frac{\text{new value}}{\text{original value}} \times 100\\%\\)

option 3:
\\(\frac{\text{original value} - \text{new value}}{\text{original value}} \times 100\\%\\)

option 4:
\\(\frac{\text{original value}}{\text{new value}} \times 100\\%\\)

Explanation:

Step1: Identify the change

$$\text{change} = \text{new value} - \text{original value}$$

Step2: Calculate the relative increase

$$\text{relative increase} = \frac{\text{new value} - \text{original value}}{\text{original value}}$$

Step3: Convert to percentage

$$\text{percentage increase} = \frac{\text{new value} - \text{original value}}{\text{original value}} \times 100\%$$

Answer:

\(\frac{\text{new value} - \text{original value}}{\text{original value}} \times 100\%\)