The annual interest rate for Jacks saving account increased

The annual interest rate for Jack\'s saving account increased from 2.6% to 3.7%.

Describe the change as an absolute change in terms of percentage points.

The annual interest rate is increase by how many percentage points?

Describe the change as a relative change in terms of a percentage

The annual interest rate increased by what %

Solution

interest rate increased from 2.6% ---to ---- 3.7%

Absolute change is the difference between the two values = 3.7 - 2.6 = 1.1%

Annual interst increased by 1.1 points

Relative change = ((absolute change)/intial value) x 100

= ( 3.7 - 2.6)/(2.6) x 100 = 42.3 %

annual interest rate increased by 42.3 %