Questions: To compute the percent change, first determine the difference between the amount in the latest period and the amount in the previous period, then divide this difference by the amount in the previous period.

To compute the percent change, first determine the difference between the amount in the latest period and the amount in the previous period, then divide this difference by the amount in the previous period.

Transcript text: To compute the percent change, first determine the difference between the amount in the latest period and the amount in the previous period, then divide this difference by the amount in the $\square$ period.

Solution

Solution Steps

To compute the percent change, you need to follow these steps:

Calculate the difference between the amount in the latest period and the amount in the previous period.
Divide this difference by the amount in the previous period.
Multiply the result by 100 to convert it to a percentage.

Step 1: Calculate the Difference

To find the percent change, first calculate the difference between the latest amount and the previous amount. Given:

Latest amount = 120
Previous amount = 100

The difference is: \[ \text{Difference} = 120 - 100 = 20 \]

Step 2: Divide by the Previous Amount

Next, divide the difference by the previous amount to find the change relative to the previous amount: \[ \text{Relative Change} = \frac{20}{100} = 0.2 \]

Step 3: Convert to Percentage

Finally, convert the relative change to a percentage by multiplying by 100: \[ \text{Percent Change} = 0.2 \times 100 = 20\% \]