Assessor Series FAQ #18

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Frequently Asked Questions

QUESTION:  When I set the salary planning date backwards, the Annualized Salary Trend displayed is one value (for example 3.00%), but the Adjustment, or pro-rata figure, is a completely different value (for example, -2.91%).  Why are they different?

Mathematically speaking, if you go down by 2.91%, you have to go up by 3.0% to get back to where you started.  If the annualized % increase is 3.0%, the annualized percent decrease is 2.91% (rounded to the nearest 100th percent).

Take for example, $100,000.  Decrease this by 2.9126%.  100,000 x (1 - 0.029126) = 97,087.4.  Now increase 97,087.4 by 3%.  97,087.4 x 1.03 = 100,000 (rounded to the nearest dollar).