How Do I Find The Rate Of Decrease?

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amber Jhon Profile
amber Jhon answered
Rate of decrease is calculated by subtracting the previous value with the current value and then divide it with the previous value. The formula to calculate the rate of decrease is as follows:

% change = (x2 - x1)/x1

Where, x2 = current value, x1 = previous value

Suppose, sales of a company were 1000 units last year and this year the company has 900 units sales, therefore, the rate of decrease in the sales is as follows:

% change = (900 - 1000)/1000

% change = 0.1 = 10% decrease in sales


thanked the writer.
Oddman
Oddman commented
A rate is usually a change per unit time. A decrease of 10% per year in sales would be a "rate of decrease." A percentage decrease isn't necessarily a "rate," though percentage changes are often reported on a year-to-year basis.

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