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Percentile question

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Hi

Could someone help me understand this from the OG?

In the following example, the increase is greater than 100percent:

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If the cost of a certain house in 1983 was 300 percent of its cost in 1970, by what percent did the cost increase?

If n is the costin 1970, then the percent increase is equal to 3n - n / n = 2, or 200%.


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Why is this? Is this just a matter of nomenclature?

If something is 300 percent of its cost, doesn't that mean it is its cost * 300 percent? -- or a 300 percent increase?

Or is "percent increase" just always expressed as delta (n) / n ? (in which case it is 3n - n / n, regardless of the nomenclature confusion.

Also does this matter for the test?
Thanks!

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