What formula is used to calculate percent increase?

The formula used to calculate percent increase is correctly represented by taking the difference between the new value and the old value, dividing that difference by the old value, and then multiplying by 100 to convert it to a percentage. The formula captures how much the value has increased relative to its original state.

To break it down:

• The new value represents what the quantity is after the increase.
• The old value represents the original quantity before the increase.
• By subtracting the old value from the new value, you determine the actual amount of increase.
• Dividing this increase by the old value provides a ratio that reflects how significant the increase is in relation to the original amount.

Thus, by utilizing this formula, one can effectively understand how much a value has increased in percentage terms, which is crucial for interpreting data in various contexts such as finance, sales growth, or performance metrics.