Question

A typical middle-income household in 1980 earned $34,757. A similar household in 2009 earned $38,550. What was the relative increase in income for these households from 1980 to 2009? Round to the nearest one percent.

Answer 1

The relative increase in income for these households from 1980 to 2009 is:

11%

Explanation:

If the initial amount is : a

and the increased amount the other year is: b

Then the relative increase is calculated by:

`(b-a)/(a)`

and in percent we calculate it as:

`(b-a)/(a)* 100`

Here ,

A typical middle-income household in 1980 earned $34,757.

i.e. a=$ 34,757

A similar household in 2009 earned $38,550.

i.e. b=$ 38,550

then the relative increase in percent from 1980 to 2009 is:

`=(38,550-34,757)/(34757)* 100\\\\\\=(3793)/(34757)* 100\\\\\\=0.1091291* 100\\\\=10.91291\%`

Now, on rounding to the nearest percent we have:

Relative increase= 11%

Answer 2

Given conditions are :

In 1980's, a typical middle-income household earned= $34,757

In 2009, a similar middle-income household earned= $38,550

And we have to find relative increase in income for these households from 1980 to 2009.

So first we will find the total increase in amounts.

`38550-34757=3793`

Relative increase =
`(3793)/(34757)*100`

= 10.91% or rounding it off we get approx 11%.

Hence, the answer is 11%.