Of one starts with a lets say $6,000 to invest, and it grows or turns into $33,000; How does one calculate the return or percentage growth from the initial $6,000 to the $33,000? Thank you!

Question

Of one starts with a lets say $6,000 to invest, and it grows or turns into $33,000; How does one calculate the return or percentage growth from the initial $6,000 to the $33,000? Thank you!

1 Answers

Answer Question

Answer 1

Calculating the percentage of growth from one amount to another is an essential tool of mathematics and economics. Luckily, it is also a straightforward enough process.

First, you must calculate the total amount of growth as a figure. In this case, it is $33000 - $6000 = $27000.

Next, we must divide this amount by the figure we originally started with, in this case 6000 (we don't need the dollar signs now). So, we must calculate 27000 divide 6000. This equals 4.5.

Lastly, all we need to do is multiply by 100 to give the percentage of growth: 4.5 x 100 = 450%. In your example, the original sum has increased by 450%.

Checking Back

We can test this result by going back to the original sum and multiplying by our newly found percentage: $6000 x 450% = $27000; add this to the amount we had anyway to begin with, and we now have $33000.

This short film runs through a similar calculation: