Items can increase in price (this is sometimes called inflation). The price increase may be shown as a percentage, and is a simple percentage increase applied to the original value.
A shop is increasing the cost of its jackets by 2%. What is the new cost of a jacket, if the current price of the jacket is £84.00?
2% of £840.00
`= frac(2)(100) xx 84`
`= 1.68`
Add this to the original amount
£84.00 + £1.68 = £85.68
Answer: £85.68
The original price of a games console was £230.00. The new price is £240.00. What was the price increase as a percentage? Give the answer to 1 decimal place.
The original amount was £230.00
new amount = original amount x percentage
240 = 230 x percentage
`frac(240)(230) = ` percentage
percentage = 1.0434
Multiply by 100 = 104.34
This is a 4.3% rise (1 dp)
Answer: 4.3%
See also Percentage Increase and Decrease