What is constant percentage?

1 Answer
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%#