Question

Solve the application problem. Round to the nearest percent.

Last year, the cost of a certain insurance policy was $2,000.00 per year. This year the same insurance policy costs $2,200.00. What is the percent increase in the price of the insurance policy?

9%

11%

20%

10%

Answer 1

10%

Explanation:

To find the percent increase in the price of the insurance policy, we first need to take the total value of the original price of the insurance policy and subtract it to the new price of the insurance policy.

Price increase = New Price - Original Price

New Price = $2,200

Original Price = $2,000

Price Increase = 2,200 - 2,000

Price Increase = 200

Now to find the percentage increase, we take the price increase and divide it by the original price and multiply it by 100.

Total increase % =
`(200)/(2,000) *100`

Total increase % =
`0.1*100`

Total increase % =
`10%`