Question

A car manufacturer announced that next year the price of a certain model car would increase by 3.5%. This year the price is 15,757. Find the increase and the new price. The increase in the price of car is?The new price of car is?

Answer 1

Given:

Initial amount (Base) = 15, 757

Rate of increase = 3.5% or 0.035 in decimal form

Find: new price and the price increase

Solution:

To be able to get the new price, we need to solve for the price increase first. To do that, we need to know what is 3.5% of the old price 15, 757. To calculate that, we will multiply 0.035 by 15,757.

`0.035*15,757=551.495\approx551.50`

3.5% of 15, 757 is 551.50. This is the price increase of the car next year.

Hence, by next year, the new price will now be 15,757 + 551.50 = 16, 308.50.