1.5.2

Compound Growth & Decay

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Compound Growth and Decay

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Growth and decay

  • When an amount increases or decreases by a set percentage on a regular basis this is called compound growth or compound decay.
  • The amount that is lost/gained changes with each interval since the amount lost/gained is a percentage of the current amount.
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Formula

  • This formula gives the amount after n intervals:
    • N = S × (multiplier)n
  • Where S is the starting amount and the multiplier is the percentage multiplier:
    • 1.25 for a 25% increase or 0.6 for a 40% decrease.

Jump to other topics

1Number

1.1Place Value

1.2Factors & Multiples

1.3Operations

1.4Fractions, Decimals & Percentages

1.5Growth & Decay

1.6Measurements & Units

1.7Accuracy

2Algebra

3Ratio, Proportion & Rates of Change

4Geometry & Measures

5Probability

6Statistics

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