Growth/Decay Percentage Formula:
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The growth/decay percentage calculates the constant rate at which a quantity increases (growth) or decreases (decay) over time. It's commonly used in finance, biology, physics, and economics to measure compound changes.
The calculator uses the formula:
Where:
Explanation: The formula calculates the constant rate that would transform the old value into the new value over the given time period.
Details: Understanding growth/decay rates helps in predicting future values, analyzing trends, and making informed decisions in investments, population studies, and scientific research.
Tips: Enter the initial value (old), current value (new), and time period. All values must be valid (old ≠ 0, time > 0). The result shows the compound growth/decay rate per time period.
Q1: What's the difference between simple and compound growth rate?
A: Simple growth rate is linear, while compound growth rate accounts for growth on growth (exponential).
Q2: How do I interpret negative results?
A: Negative results indicate decay (reduction) rather than growth.
Q3: What time units should I use?
A: Use consistent units (years, months, days). The result will be per the same unit.
Q4: Can this be used for financial calculations?
A: Yes, it's commonly used to calculate compound annual growth rate (CAGR) for investments.
Q5: How does this relate to exponential functions?
A: The formula derives from the exponential growth model: new = old × (1 + r)^t, solved for r.