Calculate initial or final rates from percentage change, including discounts, markups, and successive price changes with net change results.
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Initial Rate Formula
The following two example problems outline the steps and information needed to calculate the Initial Rate.
- Where IR is the Initial Rate
- FR is the final rate
- C is the percentage change (%)
To calculate the initial rate, divide the final rate by 1 plus the percentage change divided by 100. A 100% decrease cannot determine an initial rate.
How to Calculate Initial Rate?
The following example problems outline how to calculate Initial Rate.
Example Problem #1:
- First, determine the final rate.
- The final rate is given as 500.
- Next, determine the percentage change (%).
- The percentage change (%) is provided as 30.
- Finally, calculate the Initial Rate using the equation above:
IR = FR / (1+C/100)
The values provided above are inserted into the equation below and computed.
IR = 500 / (1+30/100) ≈ 384.62
Example Problem #2:
For this problem, the variables required are provided below:
final rate = 600
percentage change (%) = 50
Test your knowledge using the equation and check your answer with the calculator.
IR = FR / (1+C/100) = ?
