Determine the growth factor corresponding to 1% increase

For an increase of percentage, it is a growth factor.

For a decrease of percentage, it is a decay factor.

The growth factor is = (1+r)

The decay factor is= (1-r)

As it is increase of 1%, it is a growth factor.

Here the rate of increase is 1% = 1/100 = 0.01

Hence the growth factor is 1 + 0.01 = 1.01

The growth factor corresponding to 1% increase is 1.01.

step-by-step explanation:

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