Hi, I've got a problem that i can't get my head around. I've been given an hourly rate based on a total number of hours.
Assumed total hours 350
Rate $49 per hour.
As the hours go down the rate goes up.
I've only used 258 hours therefore I'm trying to figure out the new rate. If I use the inverse proportional rules, I get (350/258)×49= 66.47
However, if I look at the percentage change in hours it's (258-350)/350=-26%
I would have though that the rate should be 26% higher but this comes out with a different answer. Can someone explain the differences in the two methods and why they don't agree. Am I comparing two separate things. I thought if the hours were a fifth less the rate would also be a fifth less. It doesn't work that way unless the hours are halved, therefore the rate is doubled.
Assumed total hours 350
Rate $49 per hour.
As the hours go down the rate goes up.
I've only used 258 hours therefore I'm trying to figure out the new rate. If I use the inverse proportional rules, I get (350/258)×49= 66.47
However, if I look at the percentage change in hours it's (258-350)/350=-26%
I would have though that the rate should be 26% higher but this comes out with a different answer. Can someone explain the differences in the two methods and why they don't agree. Am I comparing two separate things. I thought if the hours were a fifth less the rate would also be a fifth less. It doesn't work that way unless the hours are halved, therefore the rate is doubled.