An item originally costed $. The price was reduced to $, and the store says that the item is lowered by %. Is it true?
To find , you must first find the growth factor. You do this by using the formula above.
Let’s call the growth factor gf to save some space.
Since the value of the growth factor is less than
, you get confirmed that it is a drop in price. Then you use the formula for growth factor, with minus, to find
The price has only been reduced by %. You could have been tricked!