Question

a car manufacturer announced that next year the price of a certain model car would increase by 5.5%. This year the price is $15,795. find the increase and new price

Answer 1

Given:
This year's price - 15,795
Increase in price - 5.5%

We simply multiply the rate of increase to this year's price to get the value of increase.

15,795 x 5.5% = 868.725 rounded up to 868.73

Add the value of increase to this year's price to get next year's price.

15,795 + 868.725 = 16,663.725 rounded up to 16,663.73

We can also solve for next year's price by adding 5.5% to 100% and multiplying its sum to 15,795

15,795 * 105.5% = 16,663.725 rounded up to 16,663.73