Understanding Percentages and Changes

The video tutorial explains how to calculate percentage change over a two-year period, focusing on the difference between absolute and percentage change. It covers the step-by-step process of calculating changes, understanding compounded growth, and the effects of percentage increase and decrease. The tutorial emphasizes the importance of using the original amount for calculations and highlights the counter-intuitive nature of compounded percentages.

What is the overall percentage change after two years of growth at 15% and 8% respectively?

• 22.8%

• 24.2%

• 25%

• 23%

Why is it important to use the original amount when calculating percentage change?

• It provides a more accurate comparison.

• It avoids using decimals.

• It is easier to remember.

• It simplifies the calculation.

How do you convert an absolute change in dollars to a percentage?

• Divide by the original amount.

• Add the original amount.

• Subtract the final amount.

• Multiply by the final amount.

How do you express a percentage as a decimal?

• Divide by 10.

• Multiply by 10.

• Multiply by 100.

• Divide by 100.

What happens to the percentage change when you add 8% to a larger amount in the second year?

• It becomes smaller.

• It remains the same.

• It cancels out.

• It becomes larger.

What is the effect of compounding on percentage changes over multiple years?

• It makes the total change smaller than the sum of individual changes.

• It simplifies the calculation.

• It has no effect.

• It makes the total change larger than the sum of individual changes.

Why does a 10% increase followed by a 10% decrease not result in the original amount?

• The percentages are not equal.

• The increase is applied to a smaller amount.

• The percentages cancel each other out.

• The decrease is applied to a larger amount.

What is the result of multiplying 1.1 by 0.9?

• 0.9

• 1.1

• 0.99

• 1.0

Why is a 10% of a larger number bigger than 10% of a smaller number?

• Because percentages are absolute.

• Because the base number is larger.

• Because the base number is smaller.

• Because percentages are relative.

What is the main reason percentages can be counter-intuitive?

• They are linear.

• They are non-linear.

• They are always decreasing.

• They are always increasing.