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How to calculate compound percentage change

  1. Aug 26, 2010 #1
    Example: Inflation over time
    Supposed that I want calculate the final percent change in a 10 year period.

    (year , % Change) --> (1,3) (2,4) (3,7) (4,3) (5,2) (6,5) (7,4) (8,3) (9,4) (10,6)

    How should I calculate the final percent inflation without having to calculate one by one?
     
  2. jcsd
  3. Aug 27, 2010 #2

    uart

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    100 ( 1.03 * 1.04 * 1.07 ... * 1.06 -1 )
     
  4. Aug 28, 2010 #3
    sorry for my laziness but how would you calculate with negative values?
     
  5. Aug 28, 2010 #4

    uart

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    Each term in the above product is (1 + %change/100).

    So for a 3% change (increase) the product term is 1.03, for a 3% decrease you would use 0.97 and so on.
     
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