A query in successive percentage calculations

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I was given a couple of sums by my instructor to solve relating to successive percentage calculations. What I really do not understand is whether the successive percentage formula is better to use or do I use the conventional technique. Either way I arrive at the same answer but one of them involves hairy calculations and risky approximations while the other(the conventional way) doesn't involve so. That is the reason I am slightly worried about which one to follow. Please give me a detailed analysis about how the two are equivalent and which one do I use when. I need more theory than maths here.