I have written about the meaning of percentages and percentage rises. This time let's look at percentage rises and relate this to actual costs. Let's say that house prices have risen by 70% over the last ten years (I don't know if this is true as I am just looking at the maths). Then we look at one particular house that costs £180 000. What did it cost ten years ago?
Firstly you need to know that £180 000 is not 100% of the cost. It is 170% and what you need to know is 100%. If you have understood the last sentence then the rest is easy. To find 1% you divide £180 000 by 170. To find 100% you multiply this figure by 100. I am not bothered about the result. I am bothered that you know how to do it.
If you make a mistake with a calculator then that's not good, but human error will always be present. to minimise this error have a guess at the answer. even a rough guess will make you aware of the type of answer that you are looking for. If I had told you that the price of the house now was £170 000 then you would know immediately that 10 years ago it cost £100 000. Make sure that your answer is just over £100 000
That sums it up
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