Real life scenarios where percentage exceeds 100% include :
- Profit change
- Inflation
- Population growth
100% is used to represent the total percentage of a whole. Such that the highest percentage value of a whole such as the number of people who reside in a country, the mark obtainable in a examination and so on.
The mark obtainable in an examination cannot exceed 100%
However, there are circumstances whereby percentage values are represented as more than 100%.
These scenarios usually involves instances where values are compared and expressed as percentages.
Comparing the change in price of goods between two periods :
A good that cost $20 in 2005 which is now being sold at $50. The percentage change in price in this scenario will be :
[($50 - $20) / $20] × 100% = (30/20 × 100%) = 150%
Similary ;
In Finance, profit comparison usually involves using percentages greater than 100%.
For instance ;
if a firm makes double it previous year's profit, the would be said to have made an 100% increase from previous year's profit.
If the profit is 3 times, then that would mean a 200% profit increase.
For example :
Previous year's profit = $50,000
This year's profit = $150,000
Percentage profit increase :
[($150,000 - $50,000) / $50,000] × 100%
($100,000 / $50000) × 100%
2 × 100% = 200%
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