Question

The cost of a council tax bill increased by 5%.

The council tax bill increased by £62.
Work out the cost of the council tax bill before the increase

Answer 1

To work out the cost of the council tax bill before the increase, we can use the formula:

Original cost = New cost / (1 + increase percentage)

We know that the council tax bill increased by 5% and the increase is £62. So the new cost of the council tax bill is £62 more than the original cost.

We can use the formula above to find the original cost:

Original cost = £62 / (1 + 0.05)

Original cost = £62 / 1.05

Original cost = £59.04

So the cost of the council tax bill before the increase was £59.04.