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What single decimal multiplier would you use to increase by 2% followed by a 1% increase?

User ChipJust
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1 Answer

6 votes

Answer:

Suppose that you have an initial quantity A.

If you have an increase of X%, the new quantity (NQ) is written as:

NQ = A + A*(X%/100%) = A*(1 + X%/100%).

Now, if we have an increase of 2% then:

NQ = A*(1 + 2%/100%) = A*(1 + 0.02)

And no we have another increase of 1%, then:

NQ = (A*(1 + 0.02))*(1 + 1%/100%) = A*(1 + 0.02)*(1 + 0.01) = A*1.0302

The single decimal multiplier that you can use to increase by 2% followed by a 1% increase is 1.0302

User Theister
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