# Simple Math Question

**URL:** https://boards.straightdope.com/t/simple-math-question/380130
**Category:** Factual Questions
**Created:** [November 12, 2006, 6:23pm UTC](https://boards.straightdope.com/t/simple-math-question/380130 "2006-11-12T18:23:44Z")
**Posts on this page:** 4
**Page:** 1

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### Author: ![TheBoneyKingofNowhere](https://avatars.discourse-cdn.com/v4/letter/t/b9e5f3/32.png) [@TheBoneyKingofNowhere](https://boards.straightdope.com/u/TheBoneyKingofNowhere)
#### Post date: [November 12, 2006, 6:23pm UTC](https://boards.straightdope.com/t/simple-math-question/380130/1 "2006-11-12T18:23:44Z")

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Calculating a percent change in something. Say population of an area between year 1 and 2. When year two is greater than year 1, simple enough:

Year 1: 2000  
Year 2: 2500

(2500/2000) -1 = 25% increase.

But what if the difference between year 1 and 2 is negative?

Year 1: 2500  
Year 2: 2000

. . Is it (2000/2500)-1 = -20%

.or is it (2500/2000)-1)/-1 = -25% (like the inverse of the increase of 25%)?

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### Author: ![Giles](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/giles/32/60_2.png) [@Giles](https://boards.straightdope.com/u/Giles)
#### Post date: [November 12, 2006, 6:26pm UTC](https://boards.straightdope.com/t/simple-math-question/380130/2 "2006-11-12T18:26:55Z")

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IMHO, it’s a 20% decrease, because it’s calculating from the starting point.

Population of 2 going to 1 is a 50% decrease, and not a 100% decrease.

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### Author: ![Alive\_At\_Both\_Ends](https://avatars.discourse-cdn.com/v4/letter/a/73ab20/32.png) [@Alive\_At\_Both\_Ends](https://boards.straightdope.com/u/Alive_At_Both_Ends)
#### Post date: [November 12, 2006, 6:27pm UTC](https://boards.straightdope.com/t/simple-math-question/380130/3 "2006-11-12T18:27:24Z")

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It’s a 20% decrease. You always use the first figure (here 2500) as the base figure when calculating percentage changes.

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### Author: ![LSLGuy](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/lslguy/32/5813_2.png) [@LSLGuy](https://boards.straightdope.com/u/LSLGuy)
#### Post date: [November 12, 2006, 8:48pm UTC](https://boards.straightdope.com/t/simple-math-question/380130/4 "2006-11-12T20:48:13Z")

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One of the key side effects here is that after taking a 20% pay cut, it takes a 25% pay raise to get back to the original rate.
