Question

The next model of a sports car will cost 4.4% more that the current model. The current model costs $48,000, How much will the price increase in dollars? What will be the price of the next model?

Answer 1

$50,112. Increase is $2,112

Explanation:

1st way. $48,000 x 1.044 = $50,112. 1.044 is the same thing as saying 104.4% of the total price in decimal form, which is what the new price would be when adding 4.4% to the 100% of the original price. To get the amount of increase just find the difference in the two. $50,112-$48,000 = $2,112

2nd way. $48,000 x .044. = $2,112 .044 is 4.4% in decimal form. So you found the increase here. Add the increase to the original price. $48,000 + $2,112 to get the new price of $50,112.