How do you calculate a 3% reduction?

Calculating a 3% Reduction

Determining a 3% reduction is a straightforward mathematical process that involves three steps: subtraction, division, and multiplication. This calculation is commonly used in various contexts, such as financial budgeting, product pricing adjustments, and quantity reductions.

Step 1: Subtract the New Value from the Original

Begin by subtracting the new value (the value after the 3% reduction) from the original value (the value before the reduction). This difference represents the amount of the reduction.

Step 2: Divide the Difference by the Original Value

Next, divide the difference obtained in Step 1 by the original value. This quotient represents the fractional proportion of the reduction relative to the original value.

Step 3: Multiply by 100 to Express as a Percentage

Finally, multiply the quotient from Step 2 by 100 to express the reduction as a percentage. This value indicates the magnitude of the decrease relative to the original value.

Example:

Suppose you have an original value of $100 and want to calculate a 3% reduction.

• Step 1: Subtract the new value from the original value.
  New value = $100 – (3% × $100) = $100 – $3 = $97
  Difference = $100 – $97 = $3

• Step 2: Divide the difference by the original value.
  Quotient = $3/$100 = 0.03

• Step 3: Multiply by 100 to express as a percentage.
  Percentage reduction = 0.03 × 100 = 3%

Therefore, the 3% reduction of $100 is $3, which is equivalent to a 3% decrease in the original value.