What is the method to determine whether a 3% or 0.03% rate of change occurred given an initial quantity and a change amount?

1 answer

To determine whether a 3% or 0.03% rate of change occurred given an initial quantity and a change amount, you can use the following method:

  1. Identify the Initial Quantity and Change Amount:

    • Let \( P_0 \) be the initial quantity.
    • Let \( \Delta P \) be the change amount.
  2. Calculate the Rate of Change: The rate of change can be calculated using the formula:

    \[ \text{Rate of Change} = \frac{\Delta P}{P_0} \]

  3. Convert the Rate of Change to a Percentage: To express the rate of change as a percentage, multiply the result by 100:

    \[ \text{Percentage Rate of Change} = \left( \frac{\Delta P}{P_0} \right) \times 100 \]

  4. Compare the Result:

    • If the result equals 3%, then a 3% rate of change occurred.
    • If the result equals 0.03%, then a 0.03% rate of change occurred.

Example

Suppose the initial quantity \( P_0 \) is 1000 and the change amount \( \Delta P \) is 30.

  1. Calculate the Rate of Change: \[ \text{Rate of Change} = \frac{30}{1000} = 0.03 \]

  2. Convert to Percentage: \[ \text{Percentage Rate of Change} = 0.03 \times 100 = 3% \]

In this case, the rate of change is 3%, not 0.03%.

Conclusion

To determine whether a change represents a 3% or a 0.03% rate of change, calculate the change as a proportion of the initial quantity and convert it to a percentage. Then, compare against the two percentage values.