Price Increases

## Price Increases

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.

## Example 1

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

## Example 2

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)