# What is constant percentage?

Jul 3, 2018

#### Answer:

Constant percentage may be translated to a growth factor.

#### Explanation:

Say something grows with a constant percentage of 10% every period, we may say that the growth factor $g = 1.10$
This means that after $t$ periods, the something has grown to ${g}^{t} = {1.10}^{t}$ its original value (as in compounded interest).

If something dimished with a a constant percentage of say 10% every period, this means that the growth factor is $0.90$, and after $t$ periods only ${0.90}^{t}$ of it is left.

You can rework these results to total percentage by multiplying by 100%