putting percentages in context!, page-5

OK Tcis, let's go through this step by step.

Start with something worth 100k.

60% loss equals new value of 40k.

To go from 40k to 100k requires a 250% increase.

It can be confusing at first. What helps is, to recognise that a % change is referenced from a starting value. So 100k going up 10% is a 10k increase to 110k. 200k going up 10% is a 20k increase to 220k.

So when price goes down, the starting value for further changes is much lower, and hence percentage change needs to be much greater to match the same absolute change (in the top example, a 60k loss in value).

Let me know if that helps.